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 Dec b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a 1 is $41,600 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. October November December Cash sales 81,200 72,000 96,200 Sales on 495,000 512,000 684,0ee account c. Purchases of inventory will total $285,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining fro in December m November's inventory purchases total $185,000, all of which will be paid 5,000 for December. Of this amount, $89,600 is for depreciation d. Selling and administrative expenses are budgeted at $45 e. A new web server for the Mar rketing Department costing $79,000 will be purchased for cash during December, and dividends totalling $10,000 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 c f. Required: 1. Prepare a schedule of expected cash collections for December. Schedule of Expected Cash Collections Collections on account October sales November sales ns ring December for merchandise purchases. of E Pa to that any interest will not be paid until the following month to