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 $42,000 b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December $ 80,600 $ 75,800 $100,200 505,000 539,000 612,000 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 $378,000 for December. Thirty percent of a month's inventory d. Selling and administrative expenses are budgeted at $511,000 for December. Of this amount, $70,500 is e. A new web server for the Marketing Department costing $99,500 will be purchased for cash during f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $208,000, all of which will be paid in December for depreciation December, and dividends totaling $11,500 will be paid during the month. 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: $100,200 October sales November sales December sales Total cash collections $100,200