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 $11,100 b. Actual sales for October and November and expected sales for December are as follows October Cash sales Sales on account $5,400 $20,000 November $4,300 $27,000 December $9,000 $43,000 Sales on account are collected over a three-month period as follows: 10% collected in the month of sale 65% collected in the month following sale, and 21% collected in the second month following sale. The remaining 4% is uncollectible c. Purchases of inventory will total $25,000 for December. Thirty percent of a month's inventory purchases d. Selling and administrative expenses are budgeted at $15,000 for December. Of this amount, $4,000 is for e. A new Web server for the Marketing Department costing $19,000 will be purchased for cash during f. The company maintains a minimum cash balance of $11,000. An open line of credit is available from the are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $19,000, all of which will be paid in December depreciation December, and dividends totaling $5,000 will be paid during the month. company's bank to bolster the cash position as needed