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 company's operations: a. The cash balance on December 1 is $44,400. b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December 72,600 86,600 89,000 s 425,00601,617,000 Sales on account are collected over a three-month period as folows 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. ere ees c Purchases of inventorywill total S358.000 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 $207000. all of which will be paid in December d. Seling and administrative expenses are budgeted at $459.000 for December Of this amount, $64,500 is for depreciation. e. A new web server for the Marketing Department costing $114,000 will be purchosed for cash during December, and dividends totailng $9.500 will be pald during the month t. The company maintains a minimum cash balance of $20000. An open ine of crecit is available from the compony's bank to Increase its cash balance as needed. Required: t Caicuiate tne expected casn collections for December 2. Calculate the expected cash disbursements for merchandise purcreses for December 3. Prepere a cash budget for December Incicete in he dinancine section any porrpwins e thet any interest wirnotbe pald artw tme felokina month Complete this question by entering your answers in the tabs be Raq : and 2 M Rea