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 companys 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:

	October				November				December
Cash sales	$	65,000			$	70,000			$	83,000
Sales on account		400,000				525,000				600,000

Sales on account are collected over a three-month period in the following ratio: 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% are uncollectible.

3. Purchases of inventory will total $280,000 for December. 30% of a months inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers inventory purchases total $161,000, all of which will be paid in December.
4. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation. These are paid in the period incurred.
5. A new Web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totalling $9,000 will be paid during the month.
6. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the companys bank to bolster the cash position, as needed.

Required: 1. Prepare a schedule of expected cash collections for December.

2. Prepare a schedule of expected cash disbursements for materials during December to suppliers for inventory purchases.

3. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month.