Assume the following data for Animal Transport Company

REFERENCE REVENUE BUDGET

Requirement

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. (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.)

 

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 4% 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 $8,300. During April they plan to purchase direct materials worth $21,210. AT plans to replace a machine in April at a net cash cost of $13,400. 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 $22,000 of the manufacturing cost and $13,500 of the nonmanufacturing (fixed) cost for April. AT currently has a $2,800 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 $5,000 in income taxes that need to be remitted in April. AT has cash of $5,900 on hand at the end of March. Cat-allac Dog-eriffic Total Cat-allac Dog-eriffic Total Revenue Budget For the Month of April Units Selling price Total Revenues 530 S 205 $ 265 310 Manufacturing Overhead Budget For the Month of April $ Machine setup costs Processing costs Inspection costs produced 550 250 $ 5 Total Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total per unit 3 108,650 82,150 190,800 8,715 105,500 465 $ 114,680 Salaries Other fixed costs Sales commissions Total nonmanufacturing costs Hourly Hours Wage Rate 1,650 $ 1,250 Nonmanufacturing Costs Budget For the Month of April $ 18,500 20,000 1,908 40,408 Total 10 $ 16,500 10 12,500 $ 29,000 Cash balance, beginning Add receipts Cash sales Credit card sales Cash Budget April 30 Total cash available for needs Deduct disbursements Direct materials Direct manufacturing labor Manufacturing overhead Nonmanufacturing salaries Sales commissions Other nonmanufacturing fixed costs Machinery purchase Income taxes Total disbursements Cash excess (deficiency) Financing Repayment of loan Interest on loan Total effects of financing Ending cash balance, April 30