Problem 8-21 Schedules of Expected Cash Collections and Disbursements [LO8-2, LO8-4, LO8-8]

Check my work 5 Problem 8-21 Schedules of Expected Cash Collections and Disbursements [LO8-2, LO8-4, LO8-8 10 points 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 $51,000. b. Actual sales for October and November and expected sales for December are as follows: eBlook Cash salea Sales on account 68,200 81,600 90,600 510,000 $603, 000 $ 636,000 Sales on account are collected over a three-month period as follows: 20% collected in the month or 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 $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 S170,500, all of which will be paid in December. 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 S18,500 will be purchased for cash during December, and dividends totaling $18,000 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 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 Prenare a rach hiarinet for neremher Indlicate in the finanrinn sertion anv horrnwinn that will he neederd rhirinn the month Assime Prev 5of10 Next > Type here to search