Assume the following data for Animal Gear 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 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.) Cash Budget April 30 Cash balance, beginning Add receipts Total cash available for needs 1. 2. Prepare a cash budget for April for Animal Gear. 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. Cash Budget April 30 Cash balance, beginning Add receipts Total cash available for needs i More Info 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 4% 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 $12,245. AG plans to replace a machine in April at a net cash cost of $13,600. 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 $24.500 of the manufacturing cost and $14,500 of the nonmanufacturing (fixed) cost for April. AG currently has a $2,700 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If AG has more than $10,000 cash at the end of April it will pay back the loan. AG owes $5,200 in income taxes that need to be remitted in April. AG has cash of $5,300 on hand at the end of March Print Done i Reference Revenue Budget For the Month of April Units Selling price Total Revenues Cat-allac 500 5 215 $ 107,500 Dog-eriffic 320 68,800 176,300 Total Manufacturing Overhead Budget For the Month of April Machine setup costs $ 8,900 Processing costs 43,000 Inspection costs 448 $ Total 52,348 Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Cat-allac 520 3 1 ,560 $ 10 $ Dog-eriffic 200 5 1,000 10 $ Total Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,700 Other fixed costs 18,000 Colon Sainsi 1.763 Total 15,600 10,000 25,600 Print Done Manufacturing Overhead Budget For the Month of April Machine setup costs $ 8,900 Processing costs 43,000 Inspection costs 448 $ 52,348 Total Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate 3 1 ,560 $ 10 $ 200 5 1,000 $ Total 15,600 520 Cat-allac Dog-eriffic Total 10 10,000 25,600 Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,700 Other fixed costs 18,000 Sales commissions 1,763 Total nonmanufacturing costs $ 38,463
