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 $$40,000.$

b$.$Actual sale for October and November and expected sales for December are shown below.Sales on account are collected over a three month period as follows$\mathrm{.}20\%$ collected in the month of sale$\mathrm{.}60\%$ 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 $ $65,000$ $$70,000$ $$83,000$

Sales on Account $$400,000$ $$525,000$ $$600,000$

c$.$Purchases of inventory will total $$280,000$ for December. Thirty percent of a month$$s inventory purchases are paid during the month of purchase.The accounts payable remaining from November$$s inventory purchases total $$161,000,$ all of which will be paid in December.

d$.$Selling and administrative expenses are budgeted at $$430,000$ for December. Of this amount $$50,000$ is for depreciation.

e$.$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.

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

Required.

$1.$Prepare a schedule of expected cash collections for December.

$2.$prepare a schedule of expected cash disbursements during December for merchandise purchases.

$3.$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.

Please use excel to prepare your answer, include all workings and support.

This is an individual assessment, no group work permitted.