hi i need help filling in part 2b

8,500 x 8,200 x Oxygen World is a retail store selling home oxygen equipment. Oxygen World also services home oxygen equipment, for which the company 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 Sales revenue: April sales revenue collected in Apr 97% 8.245 May sales revenue collected in May 97% 7,954 June sales revenue collected in June 9,400 97% 9,118 Service revenue: March service revenue collected in Apr. 40% 1,640 March service revenue collected in May 0% March service revenue collected in June 0% April service revenue collected in Apr. 60% 2.880 April service revenue collected in May 4.800 40% 1,920 April service revenue collected in June 4,800 x 0% 0 May service revenue collected in May 60% 3,300 May service revenue collected in June 40% 2,200 June service revenue collected in June 60% 3,720 Total collections 12.765 $ 13,174 $ 15,038 Enter any number in the edit fields and then clink Chants A- 4,100 X 0 4,100 x 4,100 x 4,800 X 0 5,500 X 5,500 x 11 6,200 X 2 of 3 (3 complete) More Info X Oxygen World les and service enue.) En World has 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 Oxygen World'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. Data Ta Print Done Month Total Revenue March Sales and Service Revenues Budget March-June 2018 Expected Sales Revenue Expected Service Revenue $ 6,500 $ 4,100 8,500 4,800 8,20% 5,500 9,400 6,200 $ 10,600 13,300 April May June 13,700 15,600 Print Done 60% = 3,720 12,765 $ 13,174 $ 15,038 ver. Clear All Oxygen World is a retail store selling home oxygen equipment. Oxygen World also services home oxygen equip month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2018 is a (Click the icon to view the forecast of sales and service revenue.) (Click the icon to view the collectic Read the requirements. The war cash avamadre vor may exceeus the vuugeleu experiantures or the monit; therefore, oxyger vonu Requirement 2b. Assume (independently for each situation) that (1) May total revenues might be 10% lower or the Oxygen World would have to borrow to cover its cash payments for May and maintain a minimum cash balance of First calculate the cash excess or deficiency for May using the original numbers and under each scenario presente a minus sign or parentheses. Complete all answer boxes. Enter a "0" if no borrowing is required.) Cash Budget For May Original May Revenues May Costs Numbers Decrease 10% Increase 5% Cash balance, beginning 550 550 Add receipts 13709 12523.60 Total cash available for needs Total disbursements Minimum cash balance desired Total cash needed Cash excess (deficiency) Enter any number in the edit fields and then click Chool i Requirements 1. Calculate the cash that Oxygen World expects to collect in April, May and June 2018 from sales and service revenue. Show calculations for each month. 2. Oxygen World has budgeted expenditures for May of $12,000 and requires a minimum cash balance of $300 at the end of each month. It has a cash balance on May 1 of $100. a. Given your answer to requirement 1, will Oxygen World 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 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 Oxygen World 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 $100 on May 1.) 3. Why do Oxygen World'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. Print Done fields and then click Check Answer. Clear All C To see what to study next, go to your Study Plan. ra W on R R