Assume the following data for Pet 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 Pet Gear. 2. Why do Pet 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 Pet 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.) Cash Budget April 30 Revenue Budget For the Month of April For the Month of April Cash balance, beginning DMLH Units Selling price Total Revenues Output units produced Add receipts per unit Cat-allac 580 $ 190 S 110,200 55.900 Cat-allac 600 3 Total Hourly Hours Wage Rate Total 1,800 $ 14 $ 25,200 1,000 14 14,000 $ 39,200 Dog-eriffic 215 260 Dog-eriffic 200 5 $ 166,100 Total Total cash available for needs Total Pet Gear (PG) does not make any sales on credit. PG sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which PG gets the cash right away, less a 2% transaction fee Purchases of materials are on account. PG pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, PG owes suppliers $8,300. During April they plan to purchase direct materials worth $12,965. PG plans to replace a machine in April at a net cash cost of $13,400. 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 $20,500 of the manufacturing cost and $14,000 of the nonmanufacturing (fixed) cost for April. PG currently has a $2,400 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If PG has more than $10,000 cash at the end of April it will pay back the loan. PG owes $5,700 in income taxes that need to be remitted in April. PG has cash of $5,200 on hand at the end of March. Manufacturing Overhead Budget For the Month of April Machine setup costs $ 9,100 Processing costs 60,000 480 Inspection costs S 69,580 Total Direct Manufacturing Labor Costs Budget Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,700 Other fixed costs 16,000 Sales commissions 1,661 $ 36,361 Total nonmanufacturing costs