Problem 7-07A Your answer is partially correct. Try again. You are provided with the following information taken from Splish Brothers Inc.'s March 31, 2022, balance sheet. $ 12,330 Cash Accounts receivable 20,370 Inventory 36,900 Property, plant, and equipment, net of depreciation 120,500 Accounts payable 22,640 Common stock 153,800 12,460 Retained earnings Additional information conceming Splish Brothers Inc. is as follows. 1. Gross profit is 26% of sales. Actual and budgeted 2. sales data: March (actual) April (budgeted) $47,000 73,100 3. Sales are both cash and credit. Cash collections expected in April are: $18,800 (40% of $47,000) March April 43,860 (60% of $73,100) $62,660 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: 4. $22,640 28,310 $50,950 Purchases March Purchases April Cash operating costs are anticipated to be $11,510 for the month of April. Equipment costing $2,650 will be purchased for cash in April. 5. 6. 7. The company wishes to maintain a minimum cash balance of $12,970. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 14% per year, and Interest expense is accrued at the end of the month and paid in the following month. Prepare a cash budget for the month of April. Determine how much cash Splish Brothers Inc. must borrow, or can repay, in April. SPLISH BROTHERS INC. Cash Budget For the Month Ending April 30, 2022 + 12,330 Beginning cash balance Add : Cash receipts March cash purchases April cash purchases Total receipts Total available cash