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Ashton Company, a distributor of exercise equipment, is preparing a cash budget for December, It provided the following information a. The cash balance on December 1 is $53,200 b. Actual sales for October and November and expected sales for December are as follows. 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 c. Purchases of inventory will total $318,000 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 $172.000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $525.000 for December of this amount, $57,700 is for depreciation. e. A new web server for the Marketing Department costing $82.000 will be purchased for cash duning December, and dividends totaling $12,000 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 increase its cash balance as needed Required: For December 1. Calculate the expected cash collections 2 Calculate the expected cash disbursements for merchandise purchases. 3. Prepare a cash budget. Indicate in the financing section any borrowing needed during the month. Assume any interest will not be paid until the following month