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: 25 a. The cash balance on December 1 is $56,600. b. Actual sales for October and November and expected sales for December are as follows Print Cash sales Sales on account October November December $ 71,20e 73,400 $ 86, 200 440,000 576,900 639,900 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 rerm aining 2% is uncollectible. c. Purchases of inventory will total $315,000 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 $181,500, all of which will be paid in d. Selling and administrative expenses are budgeted at $522,000 for December. Of this amount, $74,100 is for depreciation new web server for the Marketing Department costing $103,500 will be purchased for cash during Decembe totaling $10,000 will be paid during the month. r, and dividends 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 borrowing that will be needed during the month. Assume that any interest will not be paid until the following month