Problem 8-21 Schedules of Expected Cash Collections and Disbursements [L08-2, LO8-4, LO8-8 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 $47000. b Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account $ 83,880 $ 79,e00 85,600 s 588,88e $ 624,00e s 674,880 on account are collected over a three-month period as follows: 20% collected in the month of sale 60% colected 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 $372.000 for December. Thirty percent of a month's inventory purchases are paid during the month d Selling and administrative expenses are budgeted at $502,000 for December Of this amount $69.000 is for of purchase. The accounts payable remaining from November's inventory December purchases total $189.500, all of which will be paid in e. A new web server for the Marketing Department costing $88,500 wll be purchased for cash during December, and dividends totaling $14.500 will be paid during the month. t. The company maintains a minimum cash baiance of $20000 An ooen line of credit is evailable from the company's bank to increase its cash baiance as needed. Required: 1, Calculate the expected cash collections for December 2 Caiculate the expected cash disbursements for merchandise purchases for December 3 Prepare a cesh budget for Decemoer, ind care in the financing section any berrowing that wil be heeded during the month Assume that any interest will not be paid untl the fo lowing momn Complete this question by entering your answers in the tabs below