Current Attempt in Progress

You are provided with the following information taken from Blossom Inc.$\text{'}$s March $31,2025,$ balance sheet.

Cash

Accounts receivable

Inventory

Property, plant, and equipment, net of depreciation

Accounts payable

Common stock

Retained earnings

$\backslash (\backslash$$ $11,500\backslash )$

$20,000$

$36,000$

$120,000$

$22,400$

$150,000$

$11,600$

Additional information concerning Blossom Inc. is as follows.

$1.$ Gross profit is $\backslash (24\backslash \%\backslash )$ of sales.

$2.$ Actual and budgeted sales data:

March $($actual$)$

$\backslash (\backslash$$ $46,500\backslash )$

April $($budgeted$)$

$70,500$

$3.$ Sales are both cash and credit. Cash collections expected in April are:

$4.$ Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte

Purchases March

$\backslash (\backslash$$ $22,400\backslash )$

Purchases April

$28,100$

$\backslash (\backslash$$ $50,500\backslash )$

$5.$ Cash operating costs are anticipated to be $\backslash (\backslash$$ $11,500\backslash )$ for the month of April.

$6.$ Equipment costing $\backslash (\backslash$$ $2,500\backslash )$ will be purchased for cash in April.

$7.$ The company wishes to maintain a minimum cash balance of $\backslash (\backslash$$ $12,000\backslash ).$ 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 $\backslash (12\backslash \%\backslash )$ 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 Blossom Inc. must borrow, or can repay, in April. $($List items that increase cash balance first.$)$

Prepare a cash budget for the month of April. Determine how much cash Blossom Inc. must borrow, or can repay, in Ap that increase cash balance first.$)$

BLOSSOMINC.

Cash Budget