Problem 8-21 Schedules of Expected Cash Collections and Disbursements [L08-2, L084, LO8-8] 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 $55,400 b Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November Decenber $ 69,400 88,400 $. 96,800 $445,000 $596,000 $625,080 Soles on account are collected over a threemonth period as follows 20% colected in the month of sale 60% colected in the month following sale, ard 18% collected in the second month following sale. The remaining 2% isrcolectible c Purchases of inventory will total $340,000 for December. Thirty percent of a month's inventory purchases are paid during the n December d. Selling and administrative expenses are budgeted at $510,000 for December. Of this amount, $55,100 is for depreciation e. A new web server for the Marketing Department costing $83,000 will be purchased for cash during December, and divwdends totaling $18,500 will be paid during the month t. The company maintains a minimum cash balance of $20.000. An open line of credit is available from the company's bank to ncrease iats cash balance as needed Required: 1 Calculate the expected cash collections for December 2 Calculate the expected cash disbursements for merchandise purchases for December 3 Prepare a cash budget for December. Indicate in the financing section any that any interest will not be paid until the following month borrowing that will be needed during the month. Assume Complete this question by entering your answers in the tabs below