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6-41 (similar to) Question Help Assume the following data for Pet Gear Company: i (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 1 Reference - X Cash balance, beginning Add receipts i More Info - X Revenue Budget For the Month of April Total cash available for needs . Pet Gear (PG) does not make any sales on credit. PG sells only to the public and accepts cash and credit cards; Units Selling price Total Revenues 90% of its sales are to customers using credit cards, for which PG gets the cash right away, less a 2% transaction Cat-allac 580 190 S 110,20 fee. . Purchases of materials are on account. PG pays for half the purchases in the period of the purchase and the Dog-eriffic 215 260 65,900 other half in the following period. At the end of March, PG owes suppliers $8,300. During April they plan to purchase 166, 100 direct materials worth $12,990. Total . PG plans to replace a machine in April at a net cash cost of $13,000. Manufacturing Overhead Budget 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 $23,500 of the manufacturing cost and $14,000 of the For the Month of April nonmanufacturing (fixed) cost for April. Machine setup costs 9,10 . PG currently has a $2,600 loan at an annual interest rate of 24%. 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, 100 in income taxes that Processing costs 60,000 need to be remitted in April. PG has cash of $5,200 on hand at the end of March. Inspection costs 480 Total 69.580 Print Done Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total Cat-allac 600 $ 14 $ 25,200 Dog-eriffic 200 5 1.000 14. 14,000 Total $ 39,200 Nonmanufacturing Costs Budget For the Month of April Salaries 18,800 Other fixed costs 20,000 Choose from any list or enter any number in the input fields and then click Check Answer. Sales commissions 1,661 40,461