You are provided with the following information taken from Larkspur, Inc.'s March 31, 2022, balance sheet. Cash $12,060 Accounts receivable 23,980 Inventory 37,450 Property, plant, and equipment, net of depreciation Accounts payable 121,200 22,760 Common stock 152,100 Retained earnings 11,630 Additional information concerning Larkspur, Inc. is as follows. Gross profit is 24% of sales. 1. 2. Actual and budgeted sales data: March (actual) $47,400 April (budgeted) 73,000 Sales are both cash and credit. Cash collections expected in April are: 3. (40% of $47,400) March $18,960 (60% of $73,000) April 43,800 $62,760 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: 4. $22,760 Purchases March 28,880 Purchases April $51,640 Cash operating costs are anticipated to be $12,110 for the month of April Equipment costing $2,850 will be purchased for cash in April The company wishes to maintain a minimum cash balance of $12,010. 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 12% per year, and interest expense is accrued at the end of the month and paid in the following month. 5. 6. 7. Prepare a cash budget for the month of April. Determine how much cash Larkspur, Inc. must borrow, or can repay, in April. LARKSPUR, INC. Cash Budget For the Year Ended April 30, 2022 12060 Beginning cash balance Add Collections from customers Total available cash Cash disbursements Less 51640 428 PM 10/28/2019 de 51640 12110 2850