Requirement 1. Calculate the cash that Breathe Right expects to collect in May and in June 2021. Show calculations for each month. More info 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 Breathe Right's account overnight. For the servicing of home oxygen equipment, 65% of oxygen services billed each month is collected in the month of the service, and 35% is collected in the month following the service. Requirements 1. Calculate the cash that Breathe Right expects to collect in April, May and June 2021 from sales and service revenue. Show calculations for each month. 2. Breathe Right has budgeted expenditures for May of $11,500 and requires a minimum cash balance of $260 at the end of each month. It has a cash balance on May 1 of $200. a. Given your answer to requirement 1, will Breathe Right need to borrow cash to cover its payments for May and maintain a minimum cash balance of $260 at the end of May? b. Assume (independently for each situation) that (1) May total revenues might be 10% lower net cash for May and the amount Breathe Right would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $260 at the end of May. (Again, assume a balance of $200 on May 1.) 3. Why do Breathe Right's managers prepare a cash budget in addition to the revenue, expenses, Data table and operating income budget? Has preparing the cash budget been helpful? Explain briefly. Breathe Right is a retail store selling home oxygen equipment. Breathe Right also services home oxygen equipment, for which the company bills customers monthly. Breathe Right has budgeted for increases in service revenue of $600 each month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2021 is as follows: (Click the icon to view the forecast of sales and service revenue.) (Click the icon to view the collection information.) Requirement 1. Calculate the cash that Breathe Right expects to collect in May and in June 2021. Show calculations for each month. More info 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 Breathe Right's account overnight. For the servicing of home oxygen equipment, 65% of oxygen services billed each month is collected in the month of the service, and 35% is collected in the month following the service. Requirements 1. Calculate the cash that Breathe Right expects to collect in April, May and June 2021 from sales and service revenue. Show calculations for each month. 2. Breathe Right has budgeted expenditures for May of $11,500 and requires a minimum cash balance of $260 at the end of each month. It has a cash balance on May 1 of $200. a. Given your answer to requirement 1, will Breathe Right need to borrow cash to cover its payments for May and maintain a minimum cash balance of $260 at the end of May? b. Assume (independently for each situation) that (1) May total revenues might be 10% lower net cash for May and the amount Breathe Right would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $260 at the end of May. (Again, assume a balance of $200 on May 1.) 3. Why do Breathe Right's managers prepare a cash budget in addition to the revenue, expenses, Data table and operating income budget? Has preparing the cash budget been helpful? Explain briefly. Breathe Right is a retail store selling home oxygen equipment. Breathe Right also services home oxygen equipment, for which the company bills customers monthly. Breathe Right has budgeted for increases in service revenue of $600 each month due to a recent advertising campaign. The forecast of sales and service revenue for March-June 2021 is as follows: (Click the icon to view the forecast of sales and service revenue.) (Click the icon to view the collection information.)