Do the only requirement 1 and 2. all the information are given below.
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 Cash balance, beginning 5,800 Add receipts Cash sales 19,080 Credit card sales 166,568 Total cash available for needs 191,448 Deduct disbursements Direct materials Direct manufacturing labor Manufacturing overhead Nonmanufacturing salaries Sales commissions Other nonmanufacturing fixed costs Machinery purchase Income taxes Total disbursements - X More Info . . 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 3% 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 $8,100. During April they plan to purchase direct materials worth $21,130. 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 $22,000 of the manufacturing cost and $11,500 of the nonmanufacturing (fixed) cost for April. PG currently has a $2,100 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 $5,000 in income taxes that need to be remitted in April. PG has cash of $5,800 on hand at the end of March Reference X Revenue Budget For the Month of April Units Selling price Total Revenues Cat-allac 530 $ 205 $ 108,650 Dog-eriffic 265 310 82,150 $ 190,800 Total Manufacturing Overhead Budget For the Month of April Machine setup costs $ 8,715 Processing costs 108,000 Inspection costs 465 $ Total 117,180 Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total Cat-allac 550 3 1,650 $ 10 $ 16,500 Dog-eriffic 5 1,250 10 12,500 Total $ 29,000 Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,300 Other fixed costs 16,000 Sales commissions 1,908 $ 36,208 Total nonmanufacturing costs 250
