Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. The assumptions and the budget information for the two products for the month of April is given in the following tables: Click the icon to view the assumptions.) (Click the icon to view budget information.) Required 1. Prepare a cash budget for April for Animal Gear. 2. Why do Animal Gear's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Requirement 1. Prepare a cash budget for April for Animal Gear. Begin the cash budget by calculating the cash available, then total disbursements, and finally the effects of financing and the ending cash balance. (Round your answers to the nearest whole dollar. Enter "O" for repayment of loan if excess cash does not exceed $10,000 at the end of April. Use parentheses or a minus sign for a cash deficiency or a negative cash balance.) Cash Budget April 30 Cash balance, beginning Add receipts Total cash available for needs Deduct disbursements Total disbursements Cash excess (deficiency) Financing Repayment of loan Interest on loan Total effects of financing Ending cash balance, April 30 Requirement 2. Why do Animal Gear's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Animal Gear's managers prepare a cash budget in addition to the operating income budget to Animal Gear's managers may then need to If Animal Gear is profitable on an accrual accounting basis, Building a profitable operating plan that adequate cash will be available Budget information Assumptions x Revenue Budget For the Month of April Units Selling price Total Revenues 530 $ 205 $ 108,650 225 310 69,750 $ 178,400 Manufacturing Overhead Budget For the Month of April Machine setup costs $ 7,875 Processing costs 101,540 417 Inspection costs Total $ 109,832 Cat-allac Dog-eriffic Animal Gear (AG) does not make any sales on credit. AG sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which AG gets the cash right away, less a 2% transaction fee Purchases of materials are on account. AG pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, AG owes suppliers $8,000. During April they plan to purchase direct materials worth $20,024 AG plans to replace a machine in April at a net cash cost of $13,000. Labour, 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 $25,000 of the manufacturing cost and $10,000 of the nonmanufacturing (fixed) cost for April. AG currently has a $2,000 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If AG has more than $7,000 cash at the end of April it will pay back the loan. AG owes $5,000 in income taxes that need to be remitted in April. AG has cash of $5,900 on hand at the end of March. Total Direct Manufacturing Labour Costs Budget For the Month of April Nonmanufacturing Costs Budget Output units DMLH per Total Hourly For the Month of April produced unit Hours Wage Rate Total Salaries $ 16,800 550 3 1,650 $ 10 $ 16,500 Other fixed costs 16,000 216 5 1.080 10 10,800 Sales commissions 1,784 $ 27,300 S 34.584 Total nonmanufacturing costs Cat-allac Print Done Dog-eriffic Total Print Done April 30 Cash balance, beginning Add receipts Cash sales Credit card sales Direct manufacturing labour Direct materials Income taxes Interest on loan Machinery purchase Manufacturing overhead Nonmanufacturing salaries Other nonmanufacturing fixed costs Repayment of loan Sales commissions Total disbursements Cash excess (deficiency) Choose from any list or enter any number in the input fie