Schedules of expected cash collections and disbursements

Please answer parts 1-3 given a-f as supplementary information

4. Prepare a sheel balance Disbursements budgeted as Ul l and PROBLEM 7-19A schedules of Expected Cash Coliections [LOT-2,Lo7 A You have been asked to prepare a December cash budget for Ashton a distributor of equipment. The following information is available about the company operations a. cash balance on December l is $40,000. follows Actual sales for October and November and expected sales for December are as Decembe Octobe $65,000 $70,000 Cash sales $400,000 $525,000 $600,000 Sales on account Sales on account are collected over a three-month period as follows: 20% collected in the mo of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible a month's inventory c. Purchases of inventory will total $280,000 for December. Thirty percent of are paid during the month of purchase. The payable remaining from November inventory purchases total $161,000, all of which will be paid in December. is for depreciation e. A new web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totaling $9,000 will be paid during the month. f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed. Required: l. Prepare a of expected cash collections for December. 2. Prepare a schedule of cash 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 PROBLEM 7-20A Evaluating a C Rudmat Prnnnt