Prepare a schedule of expected cash collections for December.

Prepare a schedule of expected cash disbursements for merchandise purchases for December.

Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month.

You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations a. The cash balance on December 1 is $40,000 b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December $65,000 $ 70,000 $ 83,000 400,000 525,000 600,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible c. Purchases of inventory will total $280,000 for December. Thirty percent of a month's inventory d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is e. A new web server for the Marketing Department costing $76,000 will be purchased for cash during f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $161,000, all of which will be paid in December for depreciation. December, and dividends totaling $9,000 will be paid during the month. company's bank to bolster the cash position as needed