Problem 7-19A Schedules of Expected Cash Collections and Disbursements [L07-2, L07-4, LO7-8] 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 $43,200. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 76,200 $ 70,800 $ 84,400 520,000 527,000 649,000 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 $370,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $193,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $433,000 for December. Of this amount, $99,800 e. A new web server for the Marketing Department costing $78,500 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 is for depreciation December, and dividends totaling $18,500 will be paid during the month company's bank to bolster the cash position as needed