Assume the following data for Pet Luggage Company:

$($i$)($Click the icon to view the assumptions.$)$

Requirement

Prepare a cash budget for April for Pet Luggage$($Round your answers to the nearest whole dollar.$)$

Begin the cash budget by calculating the total cash available, then total disbursements, and finally the effects of financing and the ending cash balance. $($Round amounts to the nearest whole dollar.$)$

Cash Budget

April $30$

Cash balance, April $1$

Add receipts

Total cash available for needs

Deduct cash disbursements

Assumptions

Pet Luggage $($PL$)$ does not make any sales on credit. PL sells only to the public

and accepts cash and credit cards. Of its sales, $90\%$ are to customers using

credit cards, for which PL gets the cash right away, less a $3\%$ 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 $$8,300.$

PL plans to replace a machine in April at a net cash cost of $$13,600.$

Labour, other production costs, and nonproduction costs are paid in cash in the

month incurred except of course, depreciation, which is not a cash flow. For April,

$$23,500$ of the production cost and $$10,500$ of the nonproduction cost is

depreciation.

PL currently has a $$3,400$ loan at an annual interest rate of $6\%.$ 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 $$5,100$ in income taxes that need to be

remitted in April. PL has cash of $$5,600$ on hand at the end of March.