Check my 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 $47600 b. Actual sales for October and November and expected sales for December are shown below. 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 Cash sales Sales on account October $ 78,800 405,000 November $ 74,400 615,000 December $ 89,600 620,000 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 totalling $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 bolster the cash position as needed Required: 1. Prepare a schedule of expected cash collections for December Schedule of Expected Cash Collections December cash sales Collections on account: October sales November sales December sales Total cash collections GA 0 2. Prepare a schedule of expected cash disbursements during December for merchandise purchases. Schedule of Expected Cash Disbursements Payments to suppliers: November purchases December purchases Total cash payments 0 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