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You are provided with the following information taken from Skysong, Inc.'s March 31, 2022, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net
You are provided with the following information taken from Skysong, Inc.'s March 31, 2022, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings $ 11,520 22,360 36,190 120,200 22,980 151,200 11,790 Additional information concerning Skysong, Inc. is as follows. 1. Gross profit is 25% of sales. 2. Actual and budgeted sales data: March (actual) April (budgeted) $47,600 71,100 3. Sales are both cash and credit. Cash collections expected in April are: March $19,040 (40% of $47,600) April 42,660 (60% of $71,100) $61,700 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 $22,980 Purchases April 28,300 $51,280 5. Cash operating costs are anticipated to be $12,350 for the month of April. 6. Equipment costing $2,540 will be purchased for cash in April. 7. The company wishes to maintain a minimum cash balance of $12,900. 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 13% per year, and interest expense is accrued a the end of the month and paid in the following month. Prepare a cash budget for the month of April. Determine how much cash Skysong, Inc. must borrow, or can repay, in April. SKYSONG, INC. Cash Budget
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