You are provided with the following information taken from Larkspur, Inc.'s March 31, 2017, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 12,060 23,980 37,450 121,200 22,760 152,100 11,630 Additional information concerning Larkspur, Inc. is as follows. I. 2. Gross profit is 24% of sales. Actual and budgeted sales data: March (actual) April (budgeted) $47,400 73,000 3. Sales are both cash and credit. Cash collections expected in April are: March April $18,960 43,800 $62,760 (40% of $47,400) (60% of $73,000) 4. 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: Purchases March Purchases April $22,760 28,880 $51,640 5. 6. 7. 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. Prepare a cash budget for the month of April. Determine how much cash Larkspur, Inc. must borrow, or can repay, in April. 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 Month Ending April 30,2017 Beginning cash balance Add Collections from customers Less : Cash disbursements Cash operating costs Equipment purchase Total disbursements Excess (deficiency) of available cash over disbursements inancing Borrowings Repayments Ending cash balance