you have been ask to prepare a December cash budget

K Question 1 (of value 0.60 points You have been asked to prepare a December cash budget for Ashton company, a distributor of ehircise equipment. The following information is available about the company's operations. a. The cash balance on December 1 is $40,000. b. Actual sales for October and November and expected sales for December are as folows: October November December Cash sales 65,000 70,000 83,000 Sales on account 400,000 525,000 600,000 Sales on account are collected over a three-month period as follows: 20%collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncolectible c Purchases of inventory will total $280,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers inventory purchases total $161,000, a of which will be d paid in December at sao 000 for December of this amount s50 000 isfor depredation Selling and administrative expenses are budgeted e. A new web server for the Marketing Department costing S76,000 wil be purchased for cash during December, and dividends totaling S9,000 will be paid during the month f The company maintains a minimum cash balance of S20,000. An open line of credit is availablefrom the companys bank to bolster the cash position as needed Required 1. Prepare a schedule of expected cash collections for December