HealthMart is a retail store selling home oxygen equipment. HealthMart also services home oxygen equipment, for which the company bills customers monthly. HealthMart has budgeted for increases in service revenue of $200 each month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2018 is as follows: (Click the icon to view the forecast of sales and service revenue.) (Click the icon to view the collection information.) Read the requirements. The total cash available for May exceeds the budgeted expenditures for the month; therefore, HealthMart will be able to cover its payments for May and maintain a minimum cash balance of $250 at the end of May. Requirement 2b. 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 HealthMart 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.) First calculate the cash excess or deficiency for May using the original numbers and under each scenario presented. On the next line, enter the amount of borrowing required. (Enter all amounts to the nearest cent. Enter a cash deficiency with a minus sign or parentheses. Complete all answer boxes. Enter a "0" if no borrowing is required.) Cash Budget For May X More Info - Original May Revenues May Costs Numbers Decrease 10% Increase 5% Cash balance, beginning Add receipts 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 HealthMart's account overnight. For the servicing of home oxygen equipment, 60% of oxygen services billed each month is collected in the month of the service, and 40% is collected in the month following the service. Total cash available for needs Total disbursements Minimum cash balance desired Print Done Total cash needed Cash excess (deficiency) HealthMart is a retail store selling home oxygen equipment. HealthMart also services home oxygen equipment, for which the company bills customers monthly. Health Mart has budgeted for increases in service revenue of $200 each month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2018 is as follows: (Click the icon to view the forecast of sales and service revenue.) (Click the icon to view the collection information.) Read the requirements The total cash available for May exceeds the budgeted expenditures for the month; therefore, HealthMart will be able to cover its payments for May and maintain a minimum cash balance of $250 at the end of May. Requirement 2b. 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.) First calculate the cash excess or deficiency for May using the original numbers and under each scenario presented. On the next line, enter the amount of borrowing required. (Enter all amounts to the nearest cent. Enter a cash deficiency with a minus sign or parentheses. Complete all answer boxes. Enter a "0" if no borrowing is required. Cash Budget For May Data Table Original May Revenues May Costs Numbers Decrease 10% Increase 5% Cash balance, beginning Sales and Service Revenues Budget March-June 2018 Month Expected Sales Revenue Expected Service Revenue Total Revenue Add receipts March S 6,000 S 4,000 $ 10,000 Total cash available for needs April 8,000 4,200 12,200 Total disbursements May 7,500 4,400 11,900 Minimum cash balance desired June 9,000 4,600 13,600 Total cash needed Cash excess (deficiency) Print Done HealthMart is a retail store selling home oxygen equipment. HealthMart also services home oxygen equipment, for which the company bills customers monthly. Health Marl has budgeted for increases in service revenue of $200 each month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2018 is as follows: (Click the icon to view the forecast of sales and service revenue.) A (Click the icon to view the collection information.) Read the requirements. The total cash available for May exceeds the budgeted expenditures for the month; therefore, Health Mart will be able to cover its payments for May and maintain a minimum cash balance of $250 at the end of May. Requirement 2b. 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 HealthMart would have to borrow to cover ils 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.) First calculate the cash excess or deficiency for May using the original numbers and under each scenario presented. On the next line, enter the amount of borrowing required. (Enter all amounts to the nearest cent. Enter a cash deficiency with a minus sign or parentheses. Complete all answer boxes. Enter a "O" if no borrowing is required.) Cash Budget For May i Requirements Original May Revenues May Costs Numbers Decrease 10% Increase 5% Cash balance, beginning 1. Add receipts 2. Total cash available for needs Total disbursements Minimum cash balance desired Calculate the cash that Health Mart expects to collect in April, May and June 2018 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 Health Mart 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 also 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 HealthMart 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 HealthMart'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. Total cash needed Cash excess (deficiency) 3. Enter any number in the edit fields and then click Check