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Cash Sales

Credit card sales

Direct manufacturing labor

Direct materials

Income taxes

Interest on loan

Machinery purchase

Manufacturing overhead

Nonmanufacturing overhead

Other nonmanufacturing fixed costs

Repayment of loan

Sales commissions

Animal Transport (AT) does not make any sales on credit. AT sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which AT gets the cash right away, less a 2% transaction fee. Purchases of materials are on account. AT pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, AT owes suppliers $8,800. During April they plan to purchase direct materials worth $21,380. . AT 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 course depreciation, which is not a cash flow. Depreciation is $21,500 of the manufacturing cost and $14,000 of the nonmanufacturing (fixed) cost for April. . AT currently has a $2,400 loan at an annual interest rate of 12%. The interest is paid at the end of each month. If AT has more than $10,000 cash at the end of April it will pay back the loan. AT owes $5,800 in income taxes that need to be remitted in April. AT has cash of $5,300 on hand at the end of March Revenue Budget For the Month of April Units Selling price Total Revenues 530 S 205 $ 108,650 265 310 82,150 $ 190,800 Cat-allac Dog-eriffic Total Manufacturing Overhead Budget For the Month of April Machine setup costs $ 8,715 Processing costs 105,500 Inspection costs 465 Total 114.680 Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate 550 1,650 $ 10 $ 250 5 1 250 10 Cat-allac Total 16,500 12,500 w Dog-eriffic $ 29,000 Total Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,900 Other fixed costs 19,000 Sales commissions 1,908 Total nonmanufacturing costs $ 39,808 CYCHCILJ 1. 2. Prepare a cash budget for April for Animal Transport. Why do Animal Transport'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 Animal Transport. Begin the cash budget by calculating the cash available, then total disbursements, and finally the effects of financing and the ending cash balance. fexcess cash does not exceed $10,000 at the end of April.) Cash Budget April 30 Cash balance, beginning Add receipts Total cash available for needs