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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 $45,600. 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% is uncollectible. c. Purchases of inventory will total $288,000 for December. Thirty percent of a month's inventory purchases are pald during the month of purchase. The accounts payable remaining from November's inventory purchases total $162,500, all of which will be paid in December. d. Seling and administrative expenses are budgeted at $495,000 for December. Of this amount, $88,800 is for depreciation. e. A new web secver for the Marketing Department costing $83,500 will be purchased for cash during December, and dividends. totaling $17,000 will be pald during the month. 1. The company maintains a minimum cash balance of $20,000. An open line of credit is avalable from the company's bank to increase its cash balance as needed. 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 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