You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is avaliable about the company's operations: a. The cash balance on December 1 is $56.800 b. Actual sales for October and November and expected sales for December are shown below. 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. Cash sales Sales on account October $ 73,400 430,000 November December $ 87,600 $ 97,200 554,000 650.000 December c. Purchases of inventory will total $305,000 for Decembet. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $172.500, all of which will be paid in d. Selling and administrative expenses are budgeted at $481,000 for December of this amount $84.700 is for depreciation e. A new web server for the Marketing Department costing $110.500 will be purchased for cash during December, and dividends totaling $12,000 will be paid during the month. The company maintains 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 Route yuncu. 1. Prepare a schedule of expected cash collections for December Schedule of Expected Cash Collections December cash sales Collections on account October sales November sales December sales Total cash collections 2. Prepare a schedule of expected cash disbursements during December for merchandise purchases. Schedule of Expected Cash Disbursements Payments to suppliers November purchases December purchases Total cash payments 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 following month. Ashton Company Cash Budget For the Month of December Beginning cash balance Add collections from customers Total cash available Loss cash disbursements Payments to suppliers for inventory Saling and administrative expenses New web server Dividends paid Total cash disbursements Excess deficiency) of cash available over disbursements Financing Boittowings Rapayments Interest Total financing Ending cash balance