Ae https) ter 8 HW Set 2 6 You have been asked to prepare a December cash information is available about the company's operations budget for Ashton Company, a distributor of exercise equipment. The following a. The cash balance on b. Actual sales for October and November and expected sales for December are as 1 is $40,000. Cash sales Sales on account 65,eee s 7e,eee s 83,ee0 $40e,eee $525,eee $6ee,eee Print Sales on account are collected over a following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. hree month period as follows: 20% collected in the month of sale, 60% collected in the month c. Purchases of inventory will total $280.000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers Inventory purchases total $161,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation. e. A new web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totaling $9,000 will be pald during the month. f. The company maintains a minimum cash balance of $20.000. An open line of credit is available from the company's bank to increase its cash balance as needed. Required 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for 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