ou have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following Information is avallable about the company's operations: a. The cash balance on December 1 1s $55,400 b. Actual sales for October and November and expected sales for December are as follows october Nouember December Cash sales Sales on account 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% ls uncollectible c. Purchases of Inventory will total $340,000 for December. Thirty percent of a month's Inventory purchases are pald during the month of purchase. The accounts payable remalning from November's Inventory purchases total $173,500, all of which will be pald In December. d. Selling and adminlstrative expenses are budgeted at $510,000 for December. Of this amount, $55,100 is for depreclation e A new webserver for the Marketing Department costing $83,000 wl be purchasedfor cash during December, and dividends totaling $18,500 ll be pald during the month. f. The company maintalns a minimum cash balance of $20,000. An open line of credit is avallable from the company's bank to Increase ts cash balance as needed. Requlred 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandlse purchases for December. 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