Assume the following data for Animal Gear Company:

Requirements

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 $10,000 at the end of April.)
2.	Why do Animal Gear's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget?

1 Reference - X Revenue Budget More Info For the Month of April Units Selling price Total Revenues Cat-allac 580 $ 190 $ 110,200 Animal Gear (AG) does not make any sales on credit. AG sells only to the public and accepts cash and credit Dog-eriffic 215 2 80 5 5.900 cards; 90% of its sales are to customers using credit cards, for which AG gets the cash right away, less a 3% transaction fee. Total $ 166,100 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 $8,300. During April they plan to purchase Manufacturing Overhead Budget direct materials worth $13,110. For the Month of April AG plans to replace a machine in April at a net cash cost of $13,500. Labor, other manufacturing costs, and nonmanufacturing costs are paid in cash in the month incurred except of Machine setup costs $ 9.100 course depreciation, which is not a cash flow. Depreciation is $24,500 of the manufacturing cost and $14,000 of the Processing costs 80,000 nonmanufacturing (fixed) cost for April. AG currently has a $2.300 loan at an annual interest rate of 24%. The interest is paid at the end of each month. If 480 Inspection costs 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 $5,800 on hand at the end of March. $ 69,580 Total Direct Manufacturing Labor Costs Budget Print Done For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total Cat-allac 600 1,800 $ 14 $ 25,200 Dog-erific 200 5 1,000 $ 39,200 Total Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,200 Other fixed costs 19.000 Sales commissions 1.661 $ 38,881 Total nonmanufacturing costs 14 14.000 1 Reference - X Revenue Budget More Info For the Month of April Units Selling price Total Revenues Cat-allac 580 $ 190 $ 110,200 Animal Gear (AG) does not make any sales on credit. AG sells only to the public and accepts cash and credit Dog-eriffic 215 2 80 5 5.900 cards; 90% of its sales are to customers using credit cards, for which AG gets the cash right away, less a 3% transaction fee. Total $ 166,100 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 $8,300. During April they plan to purchase Manufacturing Overhead Budget direct materials worth $13,110. For the Month of April AG plans to replace a machine in April at a net cash cost of $13,500. Labor, other manufacturing costs, and nonmanufacturing costs are paid in cash in the month incurred except of Machine setup costs $ 9.100 course depreciation, which is not a cash flow. Depreciation is $24,500 of the manufacturing cost and $14,000 of the Processing costs 80,000 nonmanufacturing (fixed) cost for April. AG currently has a $2.300 loan at an annual interest rate of 24%. The interest is paid at the end of each month. If 480 Inspection costs 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 $5,800 on hand at the end of March. $ 69,580 Total Direct Manufacturing Labor Costs Budget Print Done For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total Cat-allac 600 1,800 $ 14 $ 25,200 Dog-erific 200 5 1,000 $ 39,200 Total Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,200 Other fixed costs 19.000 Sales commissions 1.661 $ 38,881 Total nonmanufacturing costs 14 14.000