Accouning section 23 08 Graded HW Chapter 8 - Budgeting Question 1 (of 0 value: 2.50 points 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 $47,000 b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account October November December 83,000 $ 79,000 85,600 500,000 624,000 674,000 Sales on account are collected over a three-month period as follows: 20% collected in the montref 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 $372,000 for December. Thirty percent of a month's inventory urchases are paid during the month of purchase. The accounts payable remaining from November's nventory purchases total $189,500, all of which will be paid in December d. Selling and administrative expenses are budgeted at $502,000 for December Of this amount, $69,000 is e. A new web server for the Marketing Department costing $88,500 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 for depreciation December, and dividends totaling $14,500 ll be paid during the month company's bank to bolster the cash position as needed. Required arch the web and Windows