show work (formulas) managerial; create a schedule showing calculation of cash collections for April & create a cash budget for month of April. indicate in the financing section any borrowing that will be necessary during the month.

3. OJ Small Company needs a cash budget for the month of April, 2020. The company's controller has provided you with the following information and assumptions: a. The April 1, 2020 cash balance is expected to be S14,000. b. All sales are on account. Credit sales are collected over a three-month period50 percent in the month of sale, 35 percent in the month following sale, and 15 percent in the second month following sale. Actual sales for February and March were $100.000 and $90,000, respectively. April's sales are budgeted at S110,000. c. Investments in marketable securities are expected to be sold for $25,000 during the month of April. d. The controller estimates that cash will be paid for direct materials totaling $35,400 during the month of April e. During April, direct labor costs are estimated to be S19,000. f. Manufacturing overhead is estimated to be $7,600. Further, the controller estimates that approximately 10 percent of the manufacturing overhead is depreciation on the factory building and equipment g. Selling and administrative expenses are budgeted at $22,000 for April. Of this amount, $7,000 is for depreciation. 1 h. During April, OJ Small Company plans to buy a new delivery van costing $25,000. The company will pay cash for the van. i. OJ Small Company owes $35,000 in income tax, which must be paid in April j. OJ Small Company must maintain a minimum cash balance of $10,000. To bolster the cash position as needed, an open line of credit is available from the bank. There is no current balance on the credit line. The amount of the credit line is limited to $100,000. (Ignore any interest to be paid on open balances.) Instructions Prepare the following 1. Create a schedule showing the calculation of cash collections for April (show your work). 2. Create a cash budget for the month of April. Indicate in the financing section any borrowing that will necessary during the month