Homework: Chapter six-SP 21 Sa Score: 0 of 1 pt 3 of 4 (0 complete) HW Score: 0%, 0 of 4 E6-34 (book/static) Question Help 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 2021 is as follows: n to view the collection Information 6 More Info - X 21 Show calculations for each month 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 ing in the service revenue collections and the total cash collections n month, select "0%" in the Collection%" column and enter a "0" in Print Done April May June rind Sllow he fol OxVaen equipment HealthMart also services home oxveen equipment for which the company bills cus gn. The forecast of sales and Data Table In information.) the ca for each month Collec all in e colu 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 7.500 4,400 11,900 June 9,000 4,600 13,600 Inue collections and the total ca n the "Collection %" column ang May June sed in Print Done ed in N Eted in * Requirements - 1. 2. Calculate the cash that HealthMart 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 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 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 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 3. enter al Print Done Clear All Check