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 will be $39,000. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 65,000 405,000 November December $67,000 523,000 $82,700 605,000 Sales on account are collected over a three-month period in the following ratio: 18% collected in the month of sale. 59% collected in the month following sale, and 21% collected in the second month following sale. The remaining 2% are uncollectible. c. Purchases of inventory will total $281,000 for December, 31% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $163,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation. These are paid in the period incurred. e. A new Web server for the Marketing Department costing $74,000 will be purchased for cash during December, and dividends totalling $9,100 will be paid during the month. f. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position, as needed.