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 $50,600. b. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales 74,400 86,000 85,000 Sales on account 515,000 533,000 672,000 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 remaining 2% is uncollectible. c. Purchases of inventory will total $317,000 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 $190,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $526,000 for December. Of this amount, $58,600 is for depreciation. e. A new web server for the Marketing Department costing $78,000 will be purchased for cash during December, and dividends totaling $15,500 will be paid during the month. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the f company's bank to bolster the cash position as needed. Required: 1. Prepare a schedule of expected cash collections for December Schedule of Expected Cash Collections December cash sales Collections on account: October sales November sales December sales Total cash collections