Problem 2 _(12 marks)__(22 minutes). The following information is available about Ashton Company: 1. The cash balance on December 1 is $40,000 Actual sales for October and November and expected sales for December are as follows: 2. October November December Cash sales $65,000 $70,000 $83,000 Credit sales 400,000 525,000 600,000 Sales on account are collected over a three-month period at the following rate: 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. 3. Purchases of inventory will total $280,000 for December. 30% of a month's inventory purchases are paid in the month of purchase and 70% are paid in the month following purchase. The accounts payable at Nov 30 total $161,000. Selling and administrative expenses are budgeted at $430,000 for December. of this amount, $50,000 is for depreciation. 5. A new web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totaling $9,000 will be paid during the month. 6. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the company's bank. 4. Required - Prepare a cash budget for December