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7 Problem 8-21 (Algo) Schedules of Expected Cash Collections and Disbursements [LO8-2, LO8-4LO8-8] You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The folowing information is available about the company operations 29 a. The cash balance on December is $47000 b. Actual sales for October and November and expected sales for December are as follows Cash sales 5.3). $ 79,000 585,6 Sales $ 500.000.000 $64,00 Sales on account are collected over three month period as follows: 20%codected in the month of sale on collected in the month following sale, and tax 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 of purchase the accounts payable reming from November's inventory purchases total $189.500, all of which will be paid in December d Sering and administrave expenses are budgeted at 5502.000 for December of this amount $69.000 is for depreciation A new web server for the Marketing Department costing $8.50 will be purchased for cash during December and dividends Staling 514 500 will be paid during the month The company maintains a murimum cash balance of $20,000. An open the of credit is available from the company's bank to Increase its cash balance as needed Required: 1 Cakulate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December 3. Prepare a cash budget for December indicate in the financing section any borrowing that will be needed during the month Assume that any interest will not be paid until the following month Complete this question by entering your answers in the tabs below PIN 7 20 Cases 14. Sales on account are collected over three month period as follows 20x collected in the month of sale, 60% collected in the month fotowing sale and collected in the second month following the remaining 2 colectie c. Purchases of inventory wit5372.000 for December Thury percent of months invertory purchases ad during the month of purchase. The accounts payable remaining from November's nventory puesto S9500, of which will be postin December d. Selling and adminispensers are budgeted at 5502.000 for December of the amount 500.000 is for depreciation A new web serves for the Marty Department coming $88.500 wil be purchased for cash during December and dividench foting S14500 will be paid during the month The company maintains a minimum cach balance of $20.000 An open line of credits avab trom the company's but increase Cat balance as needed Required Calculate the expected cash catections to December 2. Calculate the expected cash burvements for merchandise purchases for December Prepare a cash budget for December indicates the ring section anyboniowie that will be needed during the month Assume that any interest will not be paid until the following more Complete this on by your swers in the tabs below olan Calculate the speed came for December 2. Calculate the performer purch became Totalca Cwih samo da II 7 Complete this question by entering your answers in the tabs below Dat land s budget for December Indicate in the landing action any oring that will be conducting the month that we will be the following ox Cash Kan Totalcare Les cashme Pamo Diunde Talca Problem 8-21 (Algo) Schedules of Expected Cash Collections and Disbursements [LO8-2, LO8-4, L08-8) 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 The cash balance on December is $47000, b. Actual sales for October and November and expected sales for December are as follows October November December Cash sales $ 63,000 $ 79,000 $ 35,600 Sales on account $ 500.000 5.624.000 5.674,000 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 Purchases of inventory will total $372,000 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 $189.500, all of which will be paid in December a. Selling and administrative expenses are budgeted at $502,000 for December of this amount. $69.000 is for depreciation e A new web server for the Marketing Department costing $88,500 will be purchased for cash during December and dividends totaling $14,500 will be paid during the month The company maintains a minimum cash balance of $20,000 An open line of credit is available from the company's bank to increase its cash balance as needed www e. A new web server for the Marketing Department costing 588 500 wil be purchased for cash during December and dividends totaling 514 500 will be paid during the month The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company bank to increase its cash balance as needed 29 pom Required: 1 Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December 2. Prepare a cash budget for December indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month Complete this question by entering your answers in the tabs below. Now and Me Prepare a cash budget for December indicate in the financing section any torrowing that will be needed during the month sume that any interest will not be paid until the following month A Company C D For the Month of December Beginning cash bilan Madons from comes Totalcach La de Payment to pro ry wwwave Dividend paid Total Chapter 8 Homework 7 information is available about the company operations # The cash balance on December is $47000 b. Actuales for October and November and expected sales for December are as follows Chales 153,00 17.000 $ 35,00 Sale $ 500.00 $6,05674,00 Sales on account are collected over a three month period as follows 20% collected in the month of 60% collected in the month following and collided 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 months inventory purchases are paid during the month of purchase the accounts payable remaining from November's inventory purchases total 5189 500, all of which will be paid in December Setting and administrative expenses are budgeted at $502.000 for December of this amount $69.000 is for depreciation A new web server for the Marketing Department cost 588 500 will be purchased for cash during December, and dividends totaling $4,500 wil be paid during the month increase its cash balance as needed The company montarea momum cash balance of $20.000 An open le of credit is available from the company hank to Required Calculate the expected cash collections for December 2. Calculate the expected cash disbursements formerdandise purchases for December Prepare a cash budget for Decembet indicate in the finanong section any bonowing that we be needed during the month Assume that any interest will not be paid until the following month Complete thesis by entering your answers in the table increase its cash balance as needed chces Required: 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December 3. Prepare a cash budget for December Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month Complete this question by entering your answers in the tabs below. Reg I and 2 Reg 3 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for December Total cash collections Cash disbursements for merchandise purchases Req3 >

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