a. The cash balance on December'l is $51600. b. Actual sales for October and November and expected sales for Deoember are as follows: October Hovunhar Doc-amber Cash sales 5 65,600 5 74,500 $ 83,200 Sales on account 5: 430.000 $ 602,000 $ 614,000 Sales on account are collected over a th ree-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 ofinventory will total $342,000 for December. Thirty percent ofa month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $202,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $523,000 for December. Of this amount. $51,500 is for depreciation. e. A new web server for the Marketing Department costing $76,500 will be purchased for cash during December, and dividends totaling $16,500 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 increase its cash balance as needed. Ashton Company Cash Budget For the Month of December Beginning cash balance* Add collections from customers Total cash available* LESS cash disbursements ! Payments to suppliers for inventory* Selling and administrative EXPENSES NEW Web server Dividends paid Total cash disbursements EXCESS ( deficiency ; of cash available over disbursements Financing" Borrowings REpayments Interest Total financing Ending cash balance