Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pet gear Assume the following data for Pet Gear Company Click the icon to view the assumptions) (Click the icon to view budget information) Requirements

pet gear
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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. Winy do Pet Gear's maragers prepare a cash budget in addition to the revenue, expenses, and operating income budget? uniwers to the Texarest whole doliat. Enter *er" teic repayment of loan it excess 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 Help me solve this Calculator Ask my instructor Clear all Check answer - 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 4% 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 $3,300. During April they plan to purchase direct materials worth $21,280 PG plans to replace a machine in April at a net cash cost of $13,100 Labor, other manufacturing costs, and operating) 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 $10,500 of the operating (nonmanufacturing) cost for April PG currently has a $2,300 loan at an annual interest rate of 24%. The interest is paid at the end of each month. If PG has more than $7,000 cash at the end of April it will pay back the loan. PG owes $5,900 in income taxes that need to be remitted in April. PG has cash of $5,000 on hand at the end of March Print Done - X Reference Revenue Budget For the Month of April Units Selling price Total Revenues 530 $ 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 103,000 465 Inspection costs Print Done HAT no 11 lisilos - Reference $ 112,180 Total Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced Hours Wage Rate Total 550 3 1,650 $ 10 $ 16,500 5 250 1,250 12,500 10 $ 29,000 per unit Cat-allac ad Dog-eriffic SH Total All Operating (nonmanufacturing) Costs Budget For the Month of April Salaries $ 18,900 Print Done HALCO candic NC 11 Liila - Reference DMLH Output units produced per unit Cat-allac 550 3 Total Hourly Hours Wage Rate Total 1,650 $ 10 $ 16,500 1,250 10 12,500 $ 29,000 Dog-eriffic 250 5 Total Operating (nonmanufacturing) Costs Budget For the Month of April Salaries $ 18,900 Other fixed costs 15,000 Sales commissions 1,908 $ 35,808 *Total operating (nonmanufacturing) costs Print Done 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 marapers prepare a cash budget in addition to the revenue, experses, and operating income budget? Requirement 1. Prepare a cash budget for April for Pet Geu. 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 dolor Enter O for repayment of fan it excess cash does not exceed $10,000 at the end of April.) Cash Budget April 30 Cash balance beginning Add receipts Clear all Check answer Help me solve this Calculator Ask my instructor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Residential Energy Auditing And Improvement

Authors: Stan Harbuck, Donna Harbuck

1st Edition

8770229252, 978-8770229258

More Books

Students also viewed these Accounting questions