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 $50,600. b. Actual sales for October and November and expected sales for December are as follows: r December $ 74,400 86,000 85,000 october Cash sales Sales on account 515,000 $ 533,000 672,000 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 uncollectible. c Purchases of inventory will total $317,000 for December. Thirty percent of a month's inventory urchases are paid during the m onth of purchase. The accounts payable remaining from November's inventory purchases total $190.00,all of which wil be paid in December d. Selling and administrative expenses are budgeted at $526,000 for December. Of this amount, $58,600 is for depreciation. e. A new web server for the Marketing Department costing $78,000 will be purchased for cash during December, and dividends totaling $15,500 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 increase its cash balance as needed. Required: 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise 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. Complete this question by entering your answers in the tabs below Req 1 and 2 Req3 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December Req 1 and 2Req 3 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for December. Total cash collections Total cash disbursements Req 3 > Req 1 and 2Req 3 Prepare a cash budget for December. Indicate in the financing section any borrowin Assume that any interest will not be paid until the following month. Ashton Company Cash Budget For the Month of December Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Payments to suppliers for inventory Selling and administrative expenses New web server Dividends paid Total cash disburseme Excess (deficiency) of cash available over disbursements Financing 0 0 Borrowings Repayments Interest Total financing Ending cash balance 0 0 Req 1 and 2 Re