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:

1. The cash balance on December 1 will be $40,000.
2. Actual sales for October and November and expected sales for December are as follows:
   

\fRequired: 1. Prepare a schedule of expected cash collections for December. ASHTON COMPANY Schedule of Expected Cash Collections December cash sales Collections on account: October sales November sales December sales Total cash collections 2. Prepare a schedule of expected cash disbursements for materials during December to suppliers for inventory purchases. ASHTON COMPANY Schedule of Expected Cash Disbursements Payments to suppliers: November purchases (accounts payable) December purchases Total cash payments3. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. ASHTON COMPANY Cash Budget For the Month of December Total cash available before current financing Deduct disbursements: Total disbursements Excess (deficiency) of cash available over disbursements Financing: Total financing