You are provided with the following information taken from Larkspur, Inc.s March 31, 2022, balance sheet. Cash $ 11,950 Accounts receivable 21,490 Inventory 36,430 Property, plant, and equipment, net of depreciation 121,600 Accounts payable 22,860 Common stock 152,400 Retained earnings 12,600 Additional information concerning Larkspur, Inc. is as follows. 1. Gross profit is 27% of sales. 2. Actual and budgeted sales data: March (actual) $46,700 April (budgeted) 71,300 3. Sales are both cash and credit. Cash collections expected in April are: March $18,680 (40% of $46,700) April 42,780 (60% of $71,300) $61,460 4. Half of a months purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: Purchases March $22,860 Purchases April 28,170 $51,030 5. Cash operating costs are anticipated to be $11,840 for the month of April. 6. Equipment costing $2,970 will be purchased for cash in April. 7. The company wishes to maintain a minimum cash balance of $12,790. 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 15% 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 Larkspur, Inc. must borrow, or can repay, in April.

Total avallable cash 73,410 Less : Cash disbursements Payment of March purchases 22,860 April cash purchases 28,170 Equipment purchase 2,970 Cash operating costs 11,840 Total disbursements 65,810 Excess (deficiency) of available cash over disbursements Financing Add Borrowings Less V: Repayments DAO Ending cash balance $