Cash budget. (Continuation of 6-36) Assume the following: Pet Transport (PT) does not make any sales on credit. PT sells only to the public, and accepts cash and credit cards. Of its sales, 90% are to customers using credit cards, for which PT gets the cash right away, less a 3% transaction fee. Purchases of materials are on account. PT pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, PT owes sup- pliers $8,500. PT plans to replace a machine in April at a net cash cost of $13,700. Labour, other production costs, and nonproduction costs are paid in cash in the month incurred except, of course, amortization, which is not a cash flow. For April, $20,000 of the production cost and $10,000 of the nonproduction cost is amortization. PT currently has a $2,000 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If PT has more than $10,000 cash at the end of April, it will pay back the loan. PT owes $5,000 in income taxes that need to be remitted in April. PT has cash of $5,360 on hand at the end of March. REQUIRED Prepare a cash budget for April for Pet Transport.

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