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Data table More info Almost all of the sales revenues of the oxygen equipment are credit card sales; cash sales are negligible. The credit card company deposits 97% of the revenues recorded each day into OxygenMart's account overnight. For the servicing of home oxygen equipment, 65% of oxygen services billed each month is collected in the month of the service, and 35% is collected in the month following the service. 1. Calculate the cash that OxygenMart expects to collect in April, May and June 2021 from sales and service revenue. Show calculations for each month. 2. OxygenMart has budgeted expenditures for May of $13,500 and requires a minimum cash balance of $300 at the end of each month. It has a cash balance on May 1 of $300. a. Given your answer to requirement 1, will OxygenMart need to borrow cash to cover its payments for May and maintain a minimum cash balance of $300 at the end of May? b. Assume (independently for each situation) that (1) May total revenues might be 10% lower or that (2) total costs might be 5% higher. Under each of those two scenarios, show the total net cash for May and the amount OxygenMart would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $300 at the end of May. (Again, assume a balance of $300 on May 1.) 3. Why do OxygenMart's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Has preparing the cash budget been helpful? Explain briefly. OxygenMart is a retai store seling home oxygon oquipment. OxygenMart also services home orygon equigment, for which the compary bills customers moethly OxygenMart has budgothd for increases in semee revenue of $600 each month due to a recent advertising campaign. The forecast of salos and servion rovenue for March-Juno 2021 is as folows: (Cick the icon to view the forecast of sales and service sevenue.) (1) (Cick the icon to view the collection information.) Requirement 1. Calculase the cash that OxygenMart axpects to colect in May and in June 2021. Show caleulations for each month Start by showing the cash collections of sales revenue, then complete the schedule by ertering in the service fevenue colectens and the setal cash collections for each month. (Complete ail ingut Requirement 2s. OxygenMart has budgeted expenditures for May of \$13,500 and requires a minimum cash balance of $300 at the end of 6ach month it has a cash balance on M3y 1 of $302. Geven your answer to requirerrent 1 , wil OxygenMart need to borrow cash to cover is piryments for May and mairtain a minimum cssh balsnce of $350 at the and of May? The total cesh available for May the budgeted expensitures for the month; therofore, Oxygentart be able to cover ins peyments for May and maintain a minimum cash baiason cf $300 at the end of May totainet cash for Moy and the amsum OxyoenMart woild have to borrow to coype its cash paymerits for May and maivtain a minimum cash balance of $300 at the end of May. (Again, assume a. belance of 5300 on May 1.1 the rapeont cent. Enter a cash deficiency with a minus sigh or parentifeses. Complete all input fields. Enter a "O" if no botrowing is requared ? OxygenMart is a reta store sellino home oxygen equipment OxypenMart alpo servons home oxygen equipment, for which the compary bills customers monthly. OxygenMart has budgeted for increases in senvioe revenue of $600 eanh month due to a recent advertishg campaign. The forecast of sales and sevice revenue for March-June 2027 is as follows: (Cick the ion to view the forecast of sales and gervice tevenue.) (i) (Cick the icon to view the collieclion informaion 3 of $300 at the end of May. Requirement 2b. Assume findependenty for each situstion) wat (1) May todal revenues might be 10% lower or that (2) totai costs might be 5% higher. Under aach of thoso swo scenaribs, show the 1olal net cash lar May and the amouet OxygenMart would have to borrow to cover as cesh paymonts for May and maintain a minimum cash balence of S300 at the and of May. (Again, assume a balance of \$500 on Hay1.1 First caicilaie the cash expess or deficiency for May using the orignal numbers and under each scenatio presented. On the next line, omber the ameunt of borrowing requited (Entar afl amounts to the naerost cont. Enier a cash deficiency with a rinus sign or parentheses. Complate al input felde. Enter a 'O' if no borrowing is required.)