[Question & Answer] You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information…..

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 $41,200. b. Actual sales for October and November and expected sales for December are as follows: October November December $75,400 82,400 $ 97,200 490,000 544.000 629,000 Cash sales Sales on account 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 follow ng sale. The remaining 2% is uncollectible c. Purchases of inventory will total $366,000 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 $183,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $472,000 for December. Of this amount, $60,000 is e. A new web server for the Marketing Department costing $96,000 will be purchased for cash during for depreciation. December, and dividends totaling $11,500 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. 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 t for December Schodule of Fxnected Cash Dishursement 學20170918-15411 jpeg n, 20170918_15405 ..jpeg 20170918 15405…jpeg Ae 20170918 1541…peg