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 companys operations:

a) The cash balance on December 1 will be $40,000.

b) Actual sales for October and November and expected sales for December are as follows:

	October				November				December
Cash sales	$	63,000			$	70,000			$	83,600
Sales on account		399,000				530,000				603,000

Sales on account are collected over a three-month period in the following ratio: 20% collected in the month of sale, 57% collected in the month following sale, and 22% collected in the second month following sale. The remaining 1% are uncollectible.

Purchases of inventory will total $280,000 for December. 31% of a months inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers inventory purchases total $160,000, all of which will be paid in December.

Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation. These are paid in the period incurred.

A new Web server for the Marketing Department costing $74,000 will be purchased for cash during December, and dividends totalling $9,000 will be paid during the month.

The company must maintain a minimum cash balance of $19,000. An open line of credit is available from the companys bank to bolster the cash position, as needed.

Requlred: 1. Prepare a schedule of expected cash collections for December. 2. Prepare a schedule of expected cash disbursements for materlals during December to suppllers for inventory pur 3. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the