1 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 is $58,600 b. Actual sales for October and Biovember and expected sales for December are as follows: 22 Cash sales Sales on account October November December $ 73,200 $ 78,00 592.04 5485.000 5558,00 5563,00 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 186 collected in the second month following sale. The remaining 2% is uncollectible c. Purchases of inventory wil total 5316.000 for December Thiny percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases to $162.000, all of which will be paid in December Selling and nominative expenses are budgeted at $14,000 for December of this amount. $52,000 is for depreciation A new web server for the Marketing Department costing $7,500 will be purchased for cash during December and dividends ting $2.500 will be paid during the month The company maintains a minimum cash balance of $20,000. An open line of credit is valable from the company's bank to increases cash balance as needed Hequired Calculate the expected cash collections for December 2. Calculate the cash asboursements for merchandise purchases for December 3. Prepare a cash budget for December indicate in the financing section any borrowing that will be readed during the months. Assume that any rest w not be the following more Complete thistle by bring your answers in the the below Seved SE Help 1. Caiu URL ALU LAMI CUMULUOTIS II vecem 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. Red 1 and 2 Reg 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 Ashton Company Cash Budget For the Month of December Beginning cash balance Add collections from customers Total cash valable Les cash disbursements Payments to supplies for inventory Selling and administrative expenses New web server Dividends paid To cash disbursements Excess decency of cash cabe over disbursements Financing Borrowings Pepayments Toranding Ending chance