Problem 7-19A Schedules of Expected Cash Collections and Disbursements LLO7-2, LO7-4, 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 $45,400 b. Actual sales for October and November and expected sales for December are as follows October November December 67,800 70,400 93,000 Cash sales Sales on account 465,000 562,000 614,000 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 $356,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers inventory purchases total $164,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $431,000 for December. Of this amount, $54,200 is for depreciation e. A new web server for the Marketing Department costing $120,500 will be purchased for cash during December, and dividends totaling $13,500 will be paid during the month. f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the Company's bank to bolster the cash position as needed. Required 1. Prepare a schedule of expected cash collections for December Ashton Company Schedule of Expected Cash Collections December Cash sales Collections on account: October sales November sales December sales S Total cash collections