You hive been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. Ihe following . Information is evailable about the company's operations: a. The cash balance on Decernber 1 is $51,400. th. Actual sales for October and November and expected sales tor December are as tollows: 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 uncotlectible. c. Purchases of inventory wil total $287,000 for December. Thirty percent of a month's inventery purchases are pain duiring the month of purchase. The accounts payable remaining from November's inventory purchases total $160,000, all of which will be paid in December. d. Seling and administrative expenses are budgeted at $501,000 for Decembec. Of this amount, $92,300 is for depreciation. e. A new web server for the Marketing Department costing $113.500 will be purchased for cast during December, and dividends totaling $10,000 will be paid during the month. f. The company maintains a minimum cash balance of $20.000. An open line of credit is avallable from the company's bank to increase its cash balance as needed. Required: 1. Colculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for December. 3. Prepare a cash budget for December. Indicate in the financeng section any borrowing that will be needed duiling the month. Assuine that any interest will not be paid until the following month