Problem 7-19A Schedules of Expected Cash Collections and Disbursements [LO7-2, 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 companys operations: a. The cash balance on December 1 is $45,000. b. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 80,800 $ 74,000 $ 98,200 Sales on account 525,000 559,000 643,000 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 $371,000 for December. Thirty percent of a months inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers inventory purchases total $201,500, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $506,000 for December. Of this amount, $89,100 is for depreciation. e. A new web server for the Marketing Department costing $95,000 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 companys bank to bolster the cash position as needed. Required: 1. Prepare a schedule of expected cash collections for December. 2. Prepare a schedule of expected cash disbursements for merchandise purchases for December. 3. 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.