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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 octoberNovember 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 month of sale, 60% collected in the mon 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 purchases are paid during the month of purchase. The accounts payable remaining from November's inventory 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 for depreciation. e. A new web server for the Marketing Department costing $88.500 will be purchased for cash during December, and dividends totaling $14,500 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 increase its cash balance as needed

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