Your answer is partially correct. You are provided with the following information taken from Larkspur, Inc.'s March 31, 2022, balance sheet. Cash $11.950 21,490 Accounts receivable 36,430 Inventory Property, plant, and equipment, net of depreciation 121,600 22,860 Accounts payable Common stock 152,400 Retained earnings 12,600 Accounts payable 22.860 Common stock 152,400 Retained earnings 12,600 Additional information concerning Larkspur, Inc. is as follows. 1. Gross profit is 27% of sales. 2. Actual and budgeted sales data: March (actual) $46,700 April (budgeted) 71,300 3. Sales are both cash and credit. Cash collections expected in April are: March $18,680 (40% of $46,700) April 42,780 (60% of $71,300) $61,460 4. Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte $22,860 Purchases March 28,170 Purchases April $51,030 5. 6. Cash operating costs are anticipated to be $11.840 for the month of April. Equipment costing $2.970 will be purchased for cash in April. The company wishes to maintain a minimum cash balance of $12.790. 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 15% per year, and interest expense is accrued at the end of the month and paid in the following month. 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 Month Ending April 30, 2022 11950 Beginning cash balance Less Collections from customers 18680 Cash sales 42780 April cash purchases 0002 Question 2 of 5 22860 Payment of March purchases March cash purchases less 12790 Ending cash balance