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Ashton Company, a distributor of exercise equipment, is preparing a cash budget for December. It...

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Accounting

Ashton Company, a distributor of exercise equipment, is preparing a cash budget for December. It provided the following information: The cash balance on December 1 is $44,400. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 72,600 $ 86,600 $ 89,000 Sales on account $ 425,000 $ 601,000 $ 617,000 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% are uncollectible. Purchases of inventory will total $358,000 for December. Thirty percent of a months inventory purchases are paid during the month of purchase. The

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