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 $50,800. b. Actual sales for October and Nowember and expected sales for December are as follows Cash sales Sales on $ 77, 800 83,400 99,800 475, 000 $558,000 $622,000 sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected inthe month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. c. Purchases of inventory will total $375,000 for December. Thirty percent of a month's Inventory purchases are pald during the month of purchase. The accounts payable remaning from November's inventory purchases total d. Selling and administrative expenses are budgeted at $448,000 for December. Of this amount, $97,200 is for e. A new web server for the Marketing Department costing $80,000 will be purchased for cash during December, and t The company maintains a minlmum cash balance of $20,000. An open line of credit is avalable from the company's $206,500, all of which will be paid in December depreciation. dividends totaling $14,500 will be paid during the month. bank to Increase Its cash balance as needed Required: Calculate the expected cash col ections 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 tollowing month. Complete this quesion by entering your answers in the tabs below Req 1 and 2 Req 3 Calculate the expected cash disbursements for merchandise purchases for December Cash Budget For the Month Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Payments to suppliers for inventory and administrative New web server Dividends Total cash disbursements Excess (deficiency) of cash available over disbursements Re Interest Total f Ending cash balance Req 1 and 2 Req 3