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 $47,600. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 78,800 $ 405,000 November $ 74,400 December $ 89,600 $ 615,000 $ 628,000 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% are uncollectible. c. Purchases of inventory will total $351,000 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 $194,500, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $512,000 for December. Of this amount, $81,400 is for depreciation. e. A new web server for the Marketing Department costing $104,000 will be purchased for cash during December, and dividends totaling $11,500 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. 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.