Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April$30,$ and a combined cash budget for April. As Hugo Medical$$ Supply's controller, you have assembled the following$$ information:

a$.$

March $31$ equipment$$ balance, $$52,600$; accumulated$$ depreciation, $$41,300.$

b$.$

April capital expenditures of $ $42,400$ budgeted for cash purchase of equipment.

c$.$

April depreciation$$ expense, $$700.$

d$.$

Cost of goods$$ sold, $60\%$of sales.

e$.$

Other April operating$$ expenses, including income$$ tax, total $$14,200,35\%$ of which will be paid in cash and the remainder accrued at April $30.$

f$.$

March $31$ owners' equity, $$92,600.$

g$.$

March $31$ cash$$ balance, $$40,300.$

h$.$

April budgeted$$ sales, $$90,000,70\%$ of which is for cash. Of the remaining $30\%,$ half will be collected in April and half in May.

i$.$

April cash collections on March$$ sales, $$29,100.$

j$.$

April cash payments of March $31$ liabilities incurred for March purchases of$$ inventory, $$17,300.$

k$.$

March $31$ inventory$$ balance,$$29,200.$

l$.$

April purchases of$$ inventory, $$10,700$ for cash and $$36,300$ on credit. Half of the credit purchases will be paid in April and half in May.

Requirements:

$1.$

Prepare the budgeted balance sheet for HugoMedical Supply at April $30.$ Show separate computations for$$ cash, inventory, and$$ owners' equity balances.

$2.$

Prepare the combined cash budget for April.

$3.$

Suppose HugoMedical Supply has become aware of more efficient$($and more$$ expensive$)$ equipment than it budgeted for purchase in April. What is the total amount of cash available for equipment purchases in$$ April, before$$ financing, if the minimum desired ending cash balance is $$14,000?($For this$$ requirement, disregard the

$$42,400$ initially budgeted for equipment$$ purchases.$)$

$4.$

Before granting a loan to Hugo Medical$$ Supply, Pacific Commerce Bank asks for a sensitivity analysis assuming that April sales are only $$60,000$ rather than the $$90,000$ originally budgeted.$($While the cost of goods sold will$$ change, assume that$$ purchases, depreciation, and the other operating expenses will remain the same as in the earlier$$ requirements.$)$

a$.$

Prepare a revised budgeted balance sheet for Hugo Medical$$ Supply, showing separate computations for$$ cash, inventory, and$$ owners' equity balances.

b$.$

Suppose Hugo Medical Supply has a minimum desired cash balance of $$25,000.$ Will the company need to borrow cash in$$ April?