Requirement 2b. 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 Breathe Right would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $300 at the end of May. (Again, assume a balance of $200 on May 1.) First calculate the cash excess or deficiency for May using the original numbers and under each scenario presented. On the next line, enter the amount of borrowing required. (Enter all amounts to the nearest cent. Enter a cash deficiency with a minus sign or parentheses. Complete all answer boxes. Enter a "0" if no borrowing is required.) May Costs Cash Budget For May Original Numbers 200 May Revenues Decrease 10% 200 12,224.7 Cash balance, beginning Increase 5% 200 12,903.85 Add receipts 13,583 13,783 1424.7 Total cash available for needs 13103.85 Total disbursements 300 300 300 Minimum cash balance desired Total cash needed Cash excess (deficiency) Borrowing required Requirement 3. Why do Breathe Right'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. V If Breathe Right is Breathe Right's managers prepare a cash budget in addition to the operating income budget to plan V to ensure that the company has adequate profitable on an accrual accounting basis, to make scheduled payments for its expenses. Breathe Right's managers profitable operating plan that adequate cash will be available, so Breathe Right's managers Building a Requirement 2b. 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 Breathe Right would have to borrow to cover its cash payments for May and maintain a minimum cash balance of $300 at the end of May. (Again, assume a balance of $200 on May 1.) First calculate the cash excess or deficiency for May using the original numbers and under each scenario presented. On the next line, enter the amount of borrowing required. (Enter all amounts to the nearest cent. Enter a cash deficiency with a minus sign or parentheses. Complete all answer boxes. Enter a "0" if no borrowing is required.) May Costs Cash Budget For May Original Numbers 200 May Revenues Decrease 10% 200 12,224.7 Cash balance, beginning Increase 5% 200 12,903.85 Add receipts 13,583 13,783 1424.7 Total cash available for needs 13103.85 Total disbursements 300 300 300 Minimum cash balance desired Total cash needed Cash excess (deficiency) Borrowing required Requirement 3. Why do Breathe Right'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. V If Breathe Right is Breathe Right's managers prepare a cash budget in addition to the operating income budget to plan V to ensure that the company has adequate profitable on an accrual accounting basis, to make scheduled payments for its expenses. Breathe Right's managers profitable operating plan that adequate cash will be available, so Breathe Right's managers Building a
