G ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2... [ * # I P Chapter 8 Homework (required) Saved Help Save & Exit Submit Check my work 4 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: 12 5 points a. The cash balance on December 1 is $51,800. b. Actual sales for October and November and expected sales for December are as follows: eBook October November December Print Cash sales $ 80,000 $ 82,000 $ 89, 200 Sales on account $ 470, 000 $ 503, 000 $ 638,000 References 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 c. Purchases of inventory will total $338,000 for December Thirty percent of a month's inventory purchases are paid during the month of purchase The accounts payable remaining from November's inventory purchases total $163,000, all of which will be paid In December. d. Selling and administrative expenses are budgeted at $434,000 for December. Of this amount, $80,400 is for depreciation. e. A new web server for the Marketing Department costing $98,000 will be purchased for cash during December, and dividends totaling $16,000 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 increase its cash balance as needed. Required