% P6-41 (similar to) Assume the following data for Animal Transport Company: (Click the icon to view the assumptions.) (Click the icon to view budget information.) Requirements 1. Prepare a cash budget for April for Animal Transport. 2. Why do Animal Transport's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Cash balance, beginning 5,600 Add receipts Cash sales 16,610 Credit card sales 146,500 Total cash available for needs 168,710 Deduct disbursements Direct materials Direct manufacturing labor Manufacturing overhead Nonmanufacturing salaries Sales commissions Other nonmanufacturing fixed costs Machinery purchase Income taxes Total disbursements the nut field and then clickbook Anwar i X More Info 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 $8,100. During April they plan to purchase direct materials worth $12,965. AT plans to replace a machine in April at a net cash cost of $13,100. 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 $24,500 of the manufacturing cost and $14,000 of the nonmanufacturing (fixed) cost for April. AT currently has a $2,000 loan at an annual interest rate of 24%. 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 $5,000 in income taxes that need to be remitted in April. AT has cash of $5,600 on hand at the end of March. i Reference Revenue Budget For the Month of April Units Selling price Total Revenues Cat-allac 580 $ 190 $ 110,200 55,900 Dog-eriffic 215 260 $ 166,100 Total Manufacturing Overhead Budget For the Month of April Machine setup costs $ 9,100 Processing costs 60,000 480 Inspection costs $ 69,580 Total Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced Hours Wage Rate per unit Total Cat-allac 600 3 1,800 $ 14 $ 25,200 14,000 Dog-eriffic 200 5 1,000 14 $ 39,200 Total Nonmanufacturing Costs Budget For the Month of April Salaries $ 18,800 Other fixed costs 15,000 1,661 Sales commissions 35,461 Total nonmanufacturing costs