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 $47,600. b. Actual sales for October and November and expected sales for December are as follows: 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 $351000 for December. Thirty percent of a monti's inventory purchases are poid during the month of purchase. The accounts payable remaining from November's inventory purchoses total $194,500, all of which wil be paid in d. Selling and administrative expenses are budgeted at $512,000 for December, Of this amount, $84,400 is for depreciation. e. A new web server for the Marketing Department costing $104,000 will be purchased for cash durting Decembet and dividends December. f. The company maintains a minimum cash balance of $20,000. An open line of credt is available from the company's benk to totaling $11,500 will be paid during the month. increase its cash balance as needed. 3. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Asume Required: 2. Calculate the expected cash disbursements for merchandise purchases for December. 1. Calculate the expected cash collections for December. that any interest will not be paid until the following month. Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December. Ashiton 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 \begin{tabular}{|l} \hline New web server \\ \hline Dividends paid \\ \hline Total cash disbursements \\ \hline Excess (deficiency) of cash available over disbursements \\ \hline \end{tabular}