Healthy Life is a retail store selling home oxygen equipment. Healthy Life also services home oxygen equipment, for which the company bills customers monthly. Healthy Life has budgeted for increases in service revenue of $700 each month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2021 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, Requirement 1. Calculate the cash that Healthy Life expects to collect in May and in June 2021. Show calculations for each month. Start by showing the cash collections of sales revenue, then complete the schedule by entering in the service reverive collections and the total cash collections for each month. (Complete all input fields. If there were no collections of revenue for a certain month, select "0%" in the "Collection %" column and enter a "' in the appropriate Mayor June column.) Gross Expected Revenue Collection % April May June Sales revenue: April sales revenue collected in Apr May sales revenue collected in May June sales revenue collected in June X 1 Data Table Sales and Service Revenues Budget March-June 2021 Expected Sales Expected Service Total Month Revenue Revenue Revenue March $ $ 5,500 $ 4,100 $ 9,600 April 7,500 4,800 12,300 May 7,000 5,500 12,500 June 8,200 6,200 14,400 Print Done i X 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 Healthy Life's account overnight. For the servicing of home oxygen equipment, 75% of oxygen services billed each month is collected in the month of the service, and 25% is collected in the month following the service. Print Done X i Requirements 1. 2. Calculate the cash that Healthy Life expects to collect in April, May and June 2021 from sales and service revenue. Show calculations for each month. Healthy Life has budgeted expenditures for May of $11,800 and requires a minimum cash balance of $280 at the end of each month. It has a cash balance on May 1 of $450. a. Given your answer to requirement 1, will Healthy Life need to borrow cash to cover its payments for May and maintain a minimum cash balance of $280 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 Healthy Life would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $280 at the end of May. (Again, assume a balance of $450 on May 1.) Why do Healthy Life'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. Print Done