Exercise One (9 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 $51,200. b. Actual sales for October and November and expected sales for December are shown below. 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. October November December Cash sales $ 74,200 $ 79,600 $ 83,600 Sales on account $ 455,000 $ 550,000 $673,000 c. Purchases of inventory will total $346,000 for December 30% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $177,000, all of which will be paid in Decem d. Selling and administrative expenses are budgeted at $473,000 for December. Of this amount, $75,000 is for depreciation. e. A new web server for the Marketing Department costing $72,000 will be purchased for cash during December, and dividends totalling $17,500 will be paid 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 bolster the cash position as needed. Interest is paid on the first day of the following month. Final Cumulative Assignment McQ Ex. 1 Ex 2 Fx 3 FY A FY 5 Fy