You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipm ent. The followin g information is available about the company's operations a. The cash balance on December 1 is $41,600 b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December $ 81,200 $ 72,000 $ 96,200 495,000 512,000 684,000 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 $285,000 for December. Thirty percent of a month's inventory d. Selling and administrative expenses are budgeted at $455,000 for December. Of this amount, $89,600 e. A new web server for the Marketing Department costing $79,000 will be purchased for cash during f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $185,000, all of which will be paid in December is for depreciation December, and dividends totaling $10,000 will be paid during the month 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 December sales Total cash collections 2. Prepare a schedule of expected cash disbursements for merchandise purchases for December Schedule of Expected Cash Disbursements Payments to suppliers November purchases December purchases Total cash payments