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: the cash balance on december 1 is $40,000.actual sales for october and november and expected sales for december are as follows: october november decembercash sales $ 65,000 $ 70,000 $ 83,000sales on account $ 400,000 $ 525,000 $ 600,000 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. purchases of inventory will total $280,000 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 $161,000, all of which will be paid in december. selling and administrative expenses are budgeted at $430,000 for december. of this amount, $50,000 is for depreciation. a new web server for the marketing department costing $76,000 will be purchased for cash during december, and dividends totaling $9,000 will be paid during the month. 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: 1. calculate the expected cash collections for december.2. calculate the 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.