- Pet Transport (PT) does not make any sales on credit. PT sells only to the public and accepts cash and credit cards; 90% of its sales are to customers using credit cards, for which PT gets the cash right away, less a 2% transaction fee. - Purchases of materials are on account. PT pays for half the purchases in the period of the purchase and the other half in the following period. At the end of March, PT owes suppliers $8,400. During April they plan to purchase direct materials worth $12,005. - PT plans to replace a machine in April at a net cash cost of $13,100 - Labor, other manulacturing costs, and (operating) nonmanutacturing costs are paid in cash in the month incurmed except of course depreciation, which is not a cash flow Depreciation is $20,000 of the manufacturing cost and $11.000 of the operating (nonmanufacturing) cost for April. - PT currently has a $2,800 loan at an annual interest mate of 12%. The interest is paid at the end of wach month If PT has more than $7,000 cash at the end of Aptil it will pay back the loan. PT owes $5,300 in income taxes that need to be remitted in April. PT has cash of $5,400 on hand at the end of March. of the wading cash bakine Phour d your Whole dollar Enter "0" for repayment of loan it excess Cash doos not oxceed $10,000 at the cnat of April) 1. Prepare a cash budget for April for Pet Transport. 2. Why do Pet Transport's managers prepare a cash budget in addition to the revenue, expenses, and oovsating income budyet? 2. Why do Pet Transport's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Requirement 2. Why do Pet Transport's managers prepare a cash budget in addition to the revenie, expenses, and operating Pet Transport's managers prepare a cash budget in addition to the operating income budget to. plan cash flows to ensure that the company has adequate cash to pay expenses as they come due If Pet Transport is pretita