Data Table Sales and Service Revenues Budget March-June 2021 Expected Sales Expected Service Total Month Revenue Revenue Revenue March $ 6,000 $ 4,000 $ 10,000 April 8,000 4,200 12,200 May 7,500 4,400 11,900 June 9,000 4,600 13,600 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 Health Mart's account overnight. For the servicing of home oxygen equipment, 60% of oxygen services billed each nynth is collected in the month of the service, and 40% is collected in the month following the service. 1. 2. Calculate the cash that Health Mart expects to collect in April, May and June 2021 from sales and service revenue. Show calculations for each month. HealthMart has budgeted expenditures for May of $11,000 and requires a minimum cash balance of $250 at the end of each month. It has a cash balance on May 1 of $400. a. Given your answer to requirement 1, will HealthMart need to borrow cash to cover its payments for May and maintain a minimum cash balance of $250 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 Health Mart would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $250 at the end of May. (Again, assume a balance of $400 on May 1.) Why do Health Mart'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. 3