Question 2 of 5 7.8 / 10 III You are provided with the following information taken from Windsor, Inc.'s March 31, 2022, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings $ 11,600 20,180 36,010 120,800 22,560 154,500 11,680 Additional information concerning Windsor, Inc. is as follows. 1. 2. Gross profit is 25% of sales. Actual and budgeted sales data: March (actual) April (budgeted) $48,200 70,700 3. Sales are both cash and credit. Cash collections expected in April are: March $19,280 (40% of $48,200) April 42,420 (60% of $70,700) $61,700 4. Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expec Purchases March $22,560 Purchases April 28,320 $50,880 5. 6. 7. Cash operating costs are anticipated to be $12,630 for the month of April. Equipment costing $2,560 will be purchased for cash in April. The company wishes to maintain a minimum cash balance of $12,190. 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 13% 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 Windsor, Inc. must borrow, or can repay, in April. Question 2 of 5