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 $53,400 b. Actual sales for October and November and expecte sales for December are as follows Cash sales Sales on account October November December $ 77,000 $ 81,200 $ 87,800 435,000 538,000 644,000 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 c. Purchases of inventory will total $341,000 for December. Thirty percent of a month's inventory d. Selling and administrative expenses are budgeted at $516,000 for December. Of this amount, $94,900 is e. A new web server for the Marketing Department costing $121,500 will be purchased for cash during f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $165,000, all of which will be paid in December for depreciation December, and dividends totaling $13,000 will be paid during the month company's bank to bolster the cash position as needed. Required 1. Prepare a schedule of expected cash collections for December