20 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 $41,000. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 68,400 $415,000 November December $ 87,400 $95,000 $ 614,000 $ 692,000 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 $376,000 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 $174,500, all of which will be paid in December d. Selling and administrative expenses are budgeted at $452,000 for December. Of this amount, $63,500 is for depreciation, e. A new web server for the Marketing Department costing $86,500 will be purchased for cash during December, and dividends totaling $10,500 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