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 $43,200.b. actual sales for october and november and expected sales for december are as follows: october november december cash sales $ 76,200 $ 70,800 $ 84,400 sales on account 520,000 527,000 649,000 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 $370,000 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 $193,000, all of which will be paid in december. d. selling and administrative expenses are budgeted at $433,000 for december. of this amount, $99,800 is for depreciation. e. a new web server for the marketing department costing $78,500 will be purchased for cash during december, and dividends totaling $18,500 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. required: 1. prepare a schedule of expected cash collections for december. 2. prepare a schedule of expected cash disbursements for merchandise purchases for december. 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.