Problem 8-21 Schedules of Expected Cash Collections and Disbursements [LO8-2, LO8-4, Lo8-8) You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. llowin is available about the company's operations: a. The cash balance on December 1 is $51,000 b. Actual sales for October and November and expected sales for Derember are as fo oc 68,200 81,600 90,600 5 510,000 603,000 636,000 Sales on account 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 of i will total $282.000 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 $170.500, all of which will be paid d. Selling and administrative expenses are budgeted at $471,000 for December. Of this amount, $61,100 is for depreciation e. A new web server for the Marketing Department costing $118.500 will be purchased for cash during December, and dividends totaling $18,000 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 increase its cash balance as needed 2. the cash the expected cash Calculate the e cash disbursements for me andise purchases for December Ashton Company Cash Budget nth of For the ember Beginning cash balance from rint Less cash disbursements Payments to suppliers for inventory Selling and administrative expenses Dividends paid Total cash disb ments (deficiency) of cash available over disbursements Financing gs Repayments Interest Ending cash balance