Current Attempt in Progress

You are provided with the following information taken from Teal Mountain Inc.s March 31, 2022, balance sheet.

Cash		$ 12,060
Accounts receivable		20,670
Inventory		36,800
Property, plant, and equipment, net of depreciation		122,800
Accounts payable		23,330
Common stock		152,400
Retained earnings		12,520

Additional information concerning Teal Mountain Inc. is as follows.

1.		Gross profit is 27% of sales.
2.		Actual and budgeted sales data:
		March (actual)		$46,500
		April (budgeted)		73,300

3.		Sales are both cash and credit. Cash collections expected in April are:
		March		$18,600		(40% of $46,500)
		April		43,980		(60% of $73,300)
				$62,580

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	$23,330
		Purchases April	28,830
			$52,160

Cash operating costs are anticipated to be $11,530 for the month of April.
6.		Equipment costing $2,670 will be purchased for cash in April.
7.		The company wishes to maintain a minimum cash balance of $12,290. 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 14% 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 Teal Mountain Inc. must borrow, or can repay, in April.

Beginning cash balance Add Cash receipts Collections from customers TEAL MOUNTAIN INC. Cash Budget For the Month Ending April 30, 2022 19 $ $ 12060 18600 Financing Cash operating costs Total receipts Total available cash April cash purchases Total disbursements Borrowings Repayments March cash purchases Equipment purchase Beginning cash balance Cash sales Ending cash balance Cash receipts Excess (deficiency) of available cash over disbursements Cash disbursements Collections from customers Payment of March purchases