Assume the foliowing dala for Pet Transpott Company (i) (Click the icon ta view the assumptions) (Click the icon to vew budget information) Fequirements 1. Prepare a cash budget far April for Pet Transport 2. Why do Pot Transporrs managers prepare a cash budget in addition to the tovenue: expenses, and opwrating income bodger? Requirement 1. Prepare a cash budget for Aphi for Pot Transport. Begin the cash budget by calculating the cash avallable, then total disbursements, and finaly the eflects of financing and the ending cash balance (Roond your anwers to the - Pet Transport (PT) does not make any sales on credit. PT sells only to the public and accepts cash and credit cards, 90% of its sales are to customers using credit cards, for which PT gets the cash right away, less a 4% 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 suppliers \$8,600. During April they plan to purchase direct materials worth $21,130. - PT plans to replace a machine in April at a net cash cost of $13,000. - Labor, other manufacturing costs, and (operating) nonmanufacturing costs are paid in cash in the month incurred except of course depreciation, which is not a cash flow. Depreciation is $20,000 of the manufacturing cost and $13,500 of the operating (nonmanufacturing) cost for April. - PT currently has a \$2,500 loan at an annual interest rate of 24%. The interest is paid at the end of each month. If PT has more than $7.000 cash at the end of April it will pay back the loan. PT owes $5.500 in income taxes that need to be remitted in April. PT has cash of $5.700 on hand at the end of March. Revenue Budget For the Month of April Manufacturing Overhead Buget Direct Manufacturing Labor Costs Budget For the Month of April Operating (nonmanufacturing) Costs Budget