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 operation

a. The cash balance on December1 is $51,800. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a threemonth 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. October November December Cash sales $ 86,866 $ 82,888 $ 89,200 Sales on account 473,868 563,666 638,803 c. Purchases of inventory will total $338,000 for December. Thirty percent ofa month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $163,000. all ofwhich will be paid in December. d. Selling and administrative expenses are budgeted at $434,000 for December. Of this amount, $80,400 is for depreciation. e. A new web server for the Marketing Department costing $98,000 will be purchased for cash during December, and dividends totalling $16,000 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. LI Schedule of Expected Cash Collections December cash sales Collections on account: October sales November sales December sales Total cash collectionsSchedule of Expected Cash Disbursements Payments to suppliers: November purchases December purchases Total cash paymentsBeginning cash balance Add collections from customers Total cash available Less cash disbursements: Payments to suppliers for inventory Selling and administrative expenses New web server Dividends paid Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments interest Total nancing Ending cash balance