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 $56,600. b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December $ 71,200 5 73,400 $ 86,200 $ 440,000 5 576,000 $639,000 Sales on account are collected over a three-month period as follows: 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% is uncollectible. c. Purchases of inventory will total $315,000 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 $181.500, all of which will be paid in December d. Selling and administrative expenses are budgeted at $522,000 for December of this amount $74,100 is for depreciation e. A new webserver for the Marketing Department costing $103,500 will be purchased for cash during December, and dividends totaling $10,000 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 increase its cash balance as needed Required: 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December 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 Complete this question by entering your answers in the tabs below. Red 1 and 2 Reg Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter a. As of December 31(the end of the prior quarter), the company's general ledger showed the following account balances Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 51,000 206,800 59.400 361,000 $ 88,425 500,000 91,275 $ 680,200 $ 680,200 b. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February Marchi April $ 261,600 $ 396.000 $593,000 $107.000 520,000 c. Sales are 20% for cash and 80% on credit All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales d. The company's gross margin is 40% of sales in other words, cost of goods sold is 60% of sales) e. Monthly expenses are budgeted as follows salaries and wages, 526,000 per month advertising, $66,000 per month, shipping, 5% of sales, other expenses, 3% of sales Depreciation, including depreciation on new assets acquired during the quarter will be $43,860 for the quarter. 1 Each month's ending inventory should equal 25% of the following month's cost of goods sold. 9 One-half of a month's inventory purchases is paid for in the month of purchase the other half is paid in the following month h. During February, the company will purchase a new copy machine for $2100 cash. During March, other equipment will be purchased for cash at a cost of $75,500