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 "0" for repayment of loan if excess cash does not exceed $7,000 at the end of April.) Cash Budget April 30 Cash balance, beginning Add receipts 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. 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 $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 Revenue Budget For the Month of April Units Selling price Total Revenues 530 $ 205 S 108,650 225 310 69.750 S 178,400 Cat-allac Dog-eriffic Total Manufacturing Overhead Budget For the Month of April Machine setup costs 7.875 Processing costs 101.540 Inspection costs 417 Cash Budget 30-Apr 3 Beginning Cash Balance $ 5,900.00 4 Add:Receipts 5 Cash Sales $ 17,840.00 6 Credit Card Sales $1,60,560.00 7 Total Cash Available $ 1,84,300.00 8 Deduct Disbursements 9 Payment for march purchases $ 8,000.00 10 Payment for April purchases $ 10,012.00 11 Repalcement Cost of Machine $ 13,000.00 12 Direct Labor $ 27,300.00 13 Manufacturing Overhead(Excluding Depreciation) $ 84,832.00 14 Non- Manufacturing Costs(Excluding Depreciation) $ 24,584.00 15 Income tax due $ 5,000.00 16 Transaction Fee $ 3,211.20 17 Total Disbursements $ 1,75,939.20 18 Ending Cash Balance before financing $ 8,360.80 19 Financing: 20 Repayment of Loan $ 2,000.00 21 Interest on Loan 20.00 22 Total effects of Financing $ 2,020.00 23 24 Ending Cash Balance $ 6,340.80 $ Cash Budget 43220 5900 =178400*10% =178400*90% =SUM(B3:36) 3 Beginning Cash Balance 4 Add:Receipts 5 Cash Sales 6 Credit Card Sales 7 Total Cash Available 8 Deduct Disbursements 9 Payment for march purchases 10 Payment for April purchases 11 Repalcement Cost of Machine 12 Direct Labor 13 Manufacturing Overhead(Excluding Depreciation) 14 Non-Manufacturing Costs(Excluding Depreciation) 15 Income tax due 16 Transaction Fee 17 Total Disbursements 18 Ending Cash Balance before financing 19 Financing: 20 Repayment of Loan 21 Interest on Loan 22 Total effects of Financing 8000 =20024/2 13000 27300 =109832-25000 =34584-10000 5000 =B6*2% =SUM(B9:B16) =B7-B17 2000 =B20*1% =SUM(B20:B21) 23 24 Ending Cash Balance =B18-822 My question is to answer requirement 1 in the first picture using the data I provided in the other pictures. 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 "0" for repayment of loan if excess cash does not exceed $7,000 at the end of April.) Cash Budget April 30 Cash balance, beginning Add receipts 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. 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 $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 Revenue Budget For the Month of April Units Selling price Total Revenues 530 $ 205 S 108,650 225 310 69.750 S 178,400 Cat-allac Dog-eriffic Total Manufacturing Overhead Budget For the Month of April Machine setup costs 7.875 Processing costs 101.540 Inspection costs 417 Cash Budget 30-Apr 3 Beginning Cash Balance $ 5,900.00 4 Add:Receipts 5 Cash Sales $ 17,840.00 6 Credit Card Sales $1,60,560.00 7 Total Cash Available $ 1,84,300.00 8 Deduct Disbursements 9 Payment for march purchases $ 8,000.00 10 Payment for April purchases $ 10,012.00 11 Repalcement Cost of Machine $ 13,000.00 12 Direct Labor $ 27,300.00 13 Manufacturing Overhead(Excluding Depreciation) $ 84,832.00 14 Non- Manufacturing Costs(Excluding Depreciation) $ 24,584.00 15 Income tax due $ 5,000.00 16 Transaction Fee $ 3,211.20 17 Total Disbursements $ 1,75,939.20 18 Ending Cash Balance before financing $ 8,360.80 19 Financing: 20 Repayment of Loan $ 2,000.00 21 Interest on Loan 20.00 22 Total effects of Financing $ 2,020.00 23 24 Ending Cash Balance $ 6,340.80 $ Cash Budget 43220 5900 =178400*10% =178400*90% =SUM(B3:36) 3 Beginning Cash Balance 4 Add:Receipts 5 Cash Sales 6 Credit Card Sales 7 Total Cash Available 8 Deduct Disbursements 9 Payment for march purchases 10 Payment for April purchases 11 Repalcement Cost of Machine 12 Direct Labor 13 Manufacturing Overhead(Excluding Depreciation) 14 Non-Manufacturing Costs(Excluding Depreciation) 15 Income tax due 16 Transaction Fee 17 Total Disbursements 18 Ending Cash Balance before financing 19 Financing: 20 Repayment of Loan 21 Interest on Loan 22 Total effects of Financing 8000 =20024/2 13000 27300 =109832-25000 =34584-10000 5000 =B6*2% =SUM(B9:B16) =B7-B17 2000 =B20*1% =SUM(B20:B21) 23 24 Ending Cash Balance =B18-822 My question is to answer requirement 1 in the first picture using the data I provided in the other pictures