you

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 $50,800 b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December $77,800 $ 83,400 $ 99,800 475,000 558,000 622,000 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 $375,000 for December. Thirty percent of a month's inventory d. Selling and administrative expenses are budgeted at $448,000 for December. Of this amount, $97,200 e. A new web server for the Marketing Department costing $80,000 will be purchased for cash during f. The company maintains a minimum cash balance of $20, purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $206,500, all of which will be paid in December is for depreciation. December, and dividends totaling $14,500 will be paid during the month the company's bank to bolster the cash position as needed. 000. An open line of credit is available from 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 Ex Cash Disbursements Payments to suppliers November purchases December purchases Total cash payments