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 $43,200.

b. Actual sales for October and November and expected sales for December are as follows:

                                    October     November     December

Cash sales                 76,200            70,800             84,400

Sales on account     520,000         527,000           649,000

Sales on account are collected over a three-month period follows: 20% in the month of sale, 60% collected in the month as collected following sale, and 18% in the second month following sale. The remaining 2% uncollectible.

c. Purchase of inventory will total $370,000 for December. Thirty percent of a month's inventory of inventory will total purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $193,000, all of which will be paid in December.

d. Selling and administrative expenses are budgeted at $433,000 for December. Of this amount, $99,800 is for depreciation.

e. A new web server for the Marketing Department costing $78,500 will be purchased for cash during December, and dividends totaling $18,500 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