You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The followi information is available about the company's operations: a. The cash balance on December 1 is $41,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected ove three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected the second month following sale. The remaining 2% is uncollectible. Cash sales Sales on account October $ 75,400 490,000 November $ 82,400 544,000 December $ 97,200 629,000 c. Purchases of inventory will total $366,000 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 $183,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $472,000 for December of this amount, $60,000 is for depreciation. e. A new web server for the Marketing Department costing $96.000 will be purchased for cash during December, and dividends totalling $11,500 will be paid during the month . 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 Schedule of Expected Cash Collections December cash sales Collections on account October sales November sales Required: 1. Prepare a schedule of expected cash collections for December 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 during December for merchandise purchases. Schedule of Expected Cash Disbursements Payments to suppliers: November purchases 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. Assume that any interest will not be paid until the following month. Ashton Company Cash Budget For the Month of December Beginning cash balance Add collections from customers Total cash available Los cash disbursements Payments to suppliers for inventory Selling and administrative experts New web server Dividends paid Total cash disbursements Excess deficiency of cash avalatie over disbursements Pranding Borrowings Repayments Interest Total financing Ending cash balance You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The followi information is available about the company's operations: a. The cash balance on December 1 is $41,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected ove three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected the second month following sale. The remaining 2% is uncollectible. Cash sales Sales on account October $ 75,400 490,000 November $ 82,400 544,000 December $ 97,200 629,000 c. Purchases of inventory will total $366,000 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 $183,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $472,000 for December of this amount, $60,000 is for depreciation. e. A new web server for the Marketing Department costing $96.000 will be purchased for cash during December, and dividends totalling $11,500 will be paid during the month . 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 Schedule of Expected Cash Collections December cash sales Collections on account October sales November sales Required: 1. Prepare a schedule of expected cash collections for December 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 during December for merchandise purchases. Schedule of Expected Cash Disbursements Payments to suppliers: November purchases 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. Assume that any interest will not be paid until the following month. Ashton Company Cash Budget For the Month of December Beginning cash balance Add collections from customers Total cash available Los cash disbursements Payments to suppliers for inventory Selling and administrative experts New web server Dividends paid Total cash disbursements Excess deficiency of cash avalatie over disbursements Pranding Borrowings Repayments Interest Total financing Ending cash balance