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 $$58,600.$

b$.$ Actual sales for October and November and expected sales for December are shown below. 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 $$316,000$ 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 $$162,000,$ all of which will be paid in

December.

d$.$ Selling and administrative expenses are budgeted at $$514,000$ for December. Of this amount, $$52,000$ is for depreciation.

e$.$ A new web server for the Marketing Department costing $$117,500$ will be purchased for cash during December, and dividends

totalling $$12,500$ 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 bols

the cash position as needed.

Required:

$-$Prepare a schedule of expected cash collections for December.

$-$Prepare a schedule of expected cash disbursements during December for merchandise purchases.

$-$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.