You have been asked to prepare a December cash budget for Picasso Company, a distributor of exercise equipment. The following information is available about the companys operations:

a) The cash balance on December 1 is $44,000. b) Actual sales for October and November and expected sales for December are as follows: Particulars October November December Cash sales $85,000 $80,000 $93,000 Sales on account $500,000 $515,000 $610,000 c) Sales on account are collected over a three-month period as follows: 25% collected in the month of sale, 55% collected in the month following sale, and 19% collected in the second month following sale. The remaining 1% is uncollectible. d) Purchases of inventory will total $270,000 for December. Thirty-three percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $151,000, all of which will be paid in December. e) Selling and administrative expenses are budgeted at $440,000 for December. Of this amount, $60,000 is for depreciation. f) A new web server for the Marketing Department costing $77,000 will be purchased for cash during December, and dividends totaling $8,000 will be paid during the month. g) The company maintains a minimum cash balance of $25,000. An open line of credit is available from the company's bank to bolster the cash position as needed. Required: a) Prepare a schedule of expected cash collections for December. (3 marks) b) Prepare a schedule of expected cash disbursements for merchandise purchases for December. (2 marks) c) 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