Help 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 $40,000. Cash sales s 4e0,eee 5 525,eee s 6ee, 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 e second month followin 2% is uncollectible. C. Pur of inventory will total $280.000 for December. Thir ty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining in g from November's inventory purchases total $161,000, all of which will be paid Invento d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount. $50,000 is for depreciation. t costing $76.000 will be purchased for cash during December, and dividends a minimum cash balance of $20.000. An open line of credit is available from the company's bank to e. A new web server for the Marketing Department totaling $9,000 will be pald during the month. increase its cash balance as needed. 2. Calculate the expected cash di for merchandise purchases for December. ber. 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