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 $58,600. Actual sales for October and November and expected sales for December are as b. follows: Cash sales Sales on account October November December $ 73,200 $ 78,000 $ 92,000 485,000 568,000 663,000 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 $316,000 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 $162,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $514,000 for December. Of this amount, $52,000 is for depreciation. e. A new web server for the Marketing Department costing $117,500 will be purchased for cash during December, and dividends totaling $12,500 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: 1. Prepare a schedule of expected cash collections for December. Required: 1. Prepare a schedule of expected cash collections for December. Ashton Company Schedule of Expected Cash Collections December cash sales Collections on account: October sales November sales December sales Total cash collections 0 2. Prepare a schedule of expected cash disbursements for merchandise purchases for December Ashton Company Schedule of Expected Cash Disbursements Payments to suppliers: November purchases December purchases Total cash payments $ 0