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: 1. The cash balance on December 1 is $40,000. 2. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales 1555.000 $70000 583,000 Sales on account $400,000 3525.000 $600,000 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. 3. Purchases of inventory will total $280,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining front November" 5 inventory purchases total $161000, all of which will be paid in December. 4. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount. $50,000 is for depreciation. 5. A new web server for the Marketing Department costing 816,000 will be purchased for cash during December, and dividends totaling $9,000 will be paid during the month. 6. The company maintains a minimum cash balance of 820.000. An open line of credit is available from the company's bank to increase its cash balance as needed. a. {2 points) Calculate the expected cash collections for December. b. (2 points) Calculate the expected cash disbursements for merchandise purchases for December. c. {4 points) Prepare a cash budget for December. Indicate in the nancing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month