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 $51,400.
b. Actual sales for October and November and expected sales for December are as follows:
October November December
Cash sales $71,600 $80,200 $88,600
Sales on account 420,000 580,000 652,000

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.

c. Purchases of inventory will total $287,000 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 $160,000, all of which will be paid in December.
d. Selling and administrative expenses are budgeted at $501,000 for December. Of this amount, $92,300 is for depreciation.
e. A new web server for the Marketing Department costing $113,500 will be purchased for cash during December, and dividends totaling $10,000 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.

Prepare a schedule of expected cash collections for December.