Sarah Kim is the manager of an airport gift shop, P&S Inc. From the following data, Sarah wants a cash budget showing expected cash receipts and disbursement for the month of April, and the cash balance expected as of April 30, 20x7. Additional Information. a. Ending cash balance, March 31, 20x7: $100,000 b. Sales for Arpil $1,000,000; Sales for March $1,200,000, 60% collected in month of sale, 40% in next month c. Accounts payable, March 31: $460,000 d. Merchandise purchases for April: $450,000, 40% paid in month of purchase, 60% paid in next month e. Payrolls paid in April: $90,000 f. Other operating expenses for April paid in April: $45,000 g. Accrued taxes for April, payable in June: $75,000 h. Depreciation expense for April: $10,000 i. Insurance expense $1,000 for April: one year insurance policy due December 31, 20x7 for $12,000 prepaid in cash on January 1, 20x7 j. Bank loan balance on April 30: $300,000 and can borrow and repay loans only in multiples of $10,000. Assume that borrowings occur at the beginning and repayments occur at the end of the month. Repayment must be made at maximum amount if net cash from operating is available. k. Interest of 2% per month is paid in cash at the end of each month. I. Cash balance must maintain a minimum $100,000 at the end of each month for operating purposes Requirement 1. Prepare the cash budget for the month ending April 30, 20x7 P&S Inc. Cash Budget for the Month Ending April 30, 20) Beginning Cash balance, April 1, 20X7 Less Minimum cash balance desired Available cash balance Collections from customers from: April sales March sales Total cash collection Cash Disbursements for Purchases: Merchandise purchased Payment on Accounts Payable Total cash Disbursement for Purchases Cash Disbursements for Operating expenses: ($) Total Cash Disbursement for Operating Expenses Net cash reciepts and disbursements from operating Cash from Financing: Plus Borrowing at the beginning of the month Repayment of loan at the end of the month Interest payment Total cash increase(decreae) from financing Ending Cash, April 30, 20X7 Requirement 2. Would the company be able to maintain the ending balance of cash at least over $100,000 at the end of April? Analyze the cash budget of April in operating and finance