Saved 4 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 will be $39.000 b. Actual sales for October and November and expected sales for December are as follows: 10 points X 03:12:38 Cash sales Sales on account October $ 60,eee 394,08 November $ 68, see 523, see December $82,00 662,000 Sales on account are collected over a three-month period in the following ratio: 18% collected in the month of sale, 61% collected in the month following sale, and 18% collected in the second month following sale. The remaining 3% are uncollectible c. Purchases of inventory will total $280,000 for December 32% of a month's Inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $160.000. all of which will be paid in December d. Selling and administrative expenses are budgeted at $429,000 for December of this amount, $50.000 is for depreciation. These are paid in the period incurred e. A new Web server for the Marketing Department costing $77.000 will be purchased for cash during December, and dividends totalling $8.900 will be paid during the month f. The company must maintain a minimum cash balance of $21,000. An open line of credit is available from the company's bank to bolster the cash position, as needed Required: 1. Prepare a schedule of expected cash collections for December ASHTON COMPANY Scheclule of Expected Cash Collections December cash sales Collections on account October sa November sales December Total cash collections Saved 4 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 will be $39.000 b. Actual sales for October and November and expected sales for December are as follows: 10 points X 03:12:38 Cash sales Sales on account October $ 60,eee 394,08 November $ 68, see 523, see December $82,00 662,000 Sales on account are collected over a three-month period in the following ratio: 18% collected in the month of sale, 61% collected in the month following sale, and 18% collected in the second month following sale. The remaining 3% are uncollectible c. Purchases of inventory will total $280,000 for December 32% of a month's Inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $160.000. all of which will be paid in December d. Selling and administrative expenses are budgeted at $429,000 for December of this amount, $50.000 is for depreciation. These are paid in the period incurred e. A new Web server for the Marketing Department costing $77.000 will be purchased for cash during December, and dividends totalling $8.900 will be paid during the month f. The company must maintain a minimum cash balance of $21,000. An open line of credit is available from the company's bank to bolster the cash position, as needed Required: 1. Prepare a schedule of expected cash collections for December ASHTON COMPANY Scheclule of Expected Cash Collections December cash sales Collections on account October sa November sales December Total cash collections