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 will be $40,000 b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 64,000 394,000 November $ 69,000 522,000 December $ 83,300 605,000 Sales on account are collected over a three-month period in the following ratio: 18% collected in the month of sale. 59% collected in the month following sale, and 21% collected in the second month following sale. The remaining 2% are uncollectible. c. Purchases of inventory will total $278.000 for December. 31% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $159,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $429,000 for December. Of this amount. $48,000 is for depreciation. These are paid in the period incurred. e. A new Web server for the Marketing Department costing $74,000 will be purchased for cash during December, and dividends totalling $8,800 will be paid during the month. The company must maintain a minimum cash balance of $19,000. 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 ASHTON COMPANY Schedule of Expected Cash Collections December cash sales Cotections on account: October sales November sales December sales Total cash collections $ 0 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 payments $ 3. 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 0 Total cash available before current financing Deduct disbursements: 0 Total disbursements Excess (deficiency) of cash available over disbursements Financing 0 Total financing 0 0