4 of 4 (2 complete) Score: 0 of 1 pt P6-41 (similar to) Assume the following data for Animal Transport Company, Click the icon to view the assumptions.) (Click the icon to view budget Information:) Requirements 1. Prepare a cash budget for April for Animal Transport 2. Why do Animal Transport's managers prepare a cash budget in addition to the revenue, expenses, and operating income budger? Begin the cash budget by calculating the cash available, then total disbursements, and finally the effects of financing and the ending cash balance (Roundy excess cash does not exceed 510.000 at the end of April) Cash Budget April 30 Cash balance beginning Add receipts Animal Transport (AT) does not make any sales on credit. AT sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which AT gets the cash right away, less a 2% transaction fee Purchases of materials are on account. AT pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, AT owes suppliers $8,700 During April they plan to purchase direct materials worth $21,230 AT plans to replace a machine in April at a net cash cost of $13.700 Labor, other manufacturing costs, and nonmanufacturing costs are paid in cash in the month incurred except of course depreciation, which is not a cash flow. Depreciation is $23.000 of the manufacturing cost and $13,500 of the nonmanufacturing (fixed) cost for April AT currently has a $2,900 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If AT has more than $10,000 cash at the end of April it will pay back the loan AT owes $5,800 in income taxes that need to be remitted in April. AT has cash of $5,400 on hand at the end of March . Revenue Budget For the Month of April Units Selling price Total Revenues Cat-allac 530 5 205 5 108650 82.150 Dog-eriffic 265 310 $ 190,800 Total Manufacturing Overhead Budget For the Month of April Machine setup costs 8,715 Processing costs 105,500 465 Inspection costs s and Print Done e PI DOLL 4 of 4 (2 complete) Score: 0 of 1 pt P6-41 (similar to) Assume the following data for Animal Transport Company, Click the icon to view the assumptions.) (Click the icon to view budget Information:) Requirements 1. Prepare a cash budget for April for Animal Transport 2. Why do Animal Transport's managers prepare a cash budget in addition to the revenue, expenses, and operating income budger? Begin the cash budget by calculating the cash available, then total disbursements, and finally the effects of financing and the ending cash balance (Roundy excess cash does not exceed 510.000 at the end of April) Cash Budget April 30 Cash balance beginning Add receipts Animal Transport (AT) does not make any sales on credit. AT sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which AT gets the cash right away, less a 2% transaction fee Purchases of materials are on account. AT pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, AT owes suppliers $8,700 During April they plan to purchase direct materials worth $21,230 AT plans to replace a machine in April at a net cash cost of $13.700 Labor, other manufacturing costs, and nonmanufacturing costs are paid in cash in the month incurred except of course depreciation, which is not a cash flow. Depreciation is $23.000 of the manufacturing cost and $13,500 of the nonmanufacturing (fixed) cost for April AT currently has a $2,900 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If AT has more than $10,000 cash at the end of April it will pay back the loan AT owes $5,800 in income taxes that need to be remitted in April. AT has cash of $5,400 on hand at the end of March . Revenue Budget For the Month of April Units Selling price Total Revenues Cat-allac 530 5 205 5 108650 82.150 Dog-eriffic 265 310 $ 190,800 Total Manufacturing Overhead Budget For the Month of April Machine setup costs 8,715 Processing costs 105,500 465 Inspection costs s and Print Done e PI DOLL