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. The following information is available about the c s operations a. The cash balance on December 1 is $40,000 b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account october November December 65,000 70,00 83,0e $400,000 $525,00e $600,000 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 $280,000 for December Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts peyable remaining from November's inventory purchases total $161,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation e. A new web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends 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 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 bor ng that will be needed during the month. Assume