Problem 9-12 Schedules of Expected Cash Collections and Disbursements [L02] 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 December1 is $47,600. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a threemonth 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. October November December Cash sales $ 78,888 $ 74,493 $ 89,500 Sales on account 465,998 615,066 628,000 c. Purchases ofinventory will total $351,000 for December. Thirty percent ofa 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