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 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.

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:

Prepare a schedule of expected cash collections for December.

Prepare a schedule of expected cash disbursements during December for merchandise purchases.

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.