You have been asked to prepare a December cash budget for Fairview Company, a distributor of exercise equipment. The following 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 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.

October cash sales $74,500$ sales on account $490,000$

November cash sales $82,400$ sales on account $544,000$

December Cash sales $97,200$ sales on account $629,000$

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 $$96,000$ will be purchased for cash during December, and dividends totaling $$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. Requirement $1$: Prepare a schedule of expected cash collections for December.

Requirement $2$: Prepare a schedule of expected cash disbursements during December for merchandise purchases.

Requirement $3$: 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.