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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 avallable about the company's operations: a. The cash balance on December 1 is $56,800. 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% colfected 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 $305,000 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 $172,500, all of which will be paid in Decembet. d. Selling and administrative expenses are budgoted at $481,000 for December, Of this amount, $84,700 is for depreciation. e. A new web server for the Marketing Department costing $110,500 will be purchased for cash during December, and dividends totalling $12,000 will be paid during the month. f. The company maintains a minimum cash balance of $20,000. An open fine of credit is available from the company's bank to bolster the cash position as needed. Required: 1. Prepare a schedule of expected cash collections for December. 2. Prepare a schedule of expected cash disbursements during December for merchandise purchases. 3. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Assur that any interest will not be paid until the following month

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