Assume the following data for Pet Luggage Company (Click the icon to view the assumptions.) 3 Click the icon to view budget information.) Requirements 1. Prepare a cash budget for April for Pet Luggage. 2. Why do Pet Luggage'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 Luggage. 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 i excess cash does not exceed $10,000 at the end of April.) Cash Budget April 30 $ 5,200 Cash balance, beginning Add receipts Cash sales 16,610 146.500 Credit card sales 168,310 Total cash available for needs Deduct disbursements Choose from any list or enter any number in the input fields and then click Check Answer. X 1 More Info Pet Luggage (PL) does not make any sales on credit. PL sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which PL gets the cash right away, less a 2% transaction fee. Purchases of materials are on account. PL pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, PL owes suppliers $8,200. During April they plan to purchase direct materials worth $13,310. PL 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 $21,000 of the manufacturing cost and $10,500 of the nonmanufacturing (fixed) cost for April. PL currently has a $2,900 loan at an annual interest rate of 24%. The interest is paid at the end of each month. If PL has more than $10,000 cash at the end of April it will pay back the loan. PL owes $5,800 in income taxes that need to be remitted in April. PL has cash of $5,200 on hand at the end of March. Revenue Budget For the Month of April Units Selling price Total Revenues Cat-allac 580 $ 190 $ 110,200 Dog-eriffic 215 260 55,900 Total $ 166,100 Manufacturing Overhead Budget For the Month of April Machine setup costs $ 9,100 Processing costs 60,000 480 Inspection costs $ Total 69,580 Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total 600 3 1,800 $ 14 $ 25,200 200 5 1,000 14 14,000 $ 39,200 Cat-allac Dog-eriffic Total Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,800 Other fixed costs 18,000 Sales commissions 1,661 38,461 Total nonmanufacturing costs
