Requirements

1.	Prepare a cash budget for April for Pet TransportPet Transport.
2.	Why do Pet TransportPet Transport's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget?

2.

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.)

More Info Pet Transport (PT) does not make any sales on credit. PT sells only to the public and accepts cash and credi cards, 90% of its sales are to customers using credit cards, for which PT gets the cash nght away, less a 2% transaction fee Purchases of materials are on account. PT pays for haif the purchases in the period of the purchase and the other half in the following period. At the end of March, PT owes suppliers $8,600. During April they plan to purchase direct materials worth $13,190 PT plans to replace a machine in April at a net cash cost of $13,800. 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 $10,500 of the nonmanufacturing (fixed) cost for April * PT currently has a $2.800 loan at an annual interest rate of 12%. The interest is paid at the end of each month. Ir PT has more than $10,000 cash at the end of April it will pay back the loan. PT owes $5,800 in income taxes that need to be remitted in April. PT has cash of $5,700 on hand at the end of March Print Done Revenue Budget For the Month of April Units selling price Total Revenues 580 S 215 190 $ Cat-allac Dog-eriffic Total 110,200 55,900 166,100 260 Manufacturing Overhead Budget For the Month of April Machine setup costs Processing costs Inspection costs 9,100 59,000 480 68,580 Direct Manufacturing Labor Costs Budget For the Month of April Output units DMLH Total Hourly produced per unit Hours Wage Rate Total 1,800 S 14 $ 25,200 414,000 $ 39,200 Cat-allac 600 200 1,000 Total Nonmanufacturina Costs Budaet $ 18,200 18,000 1,661 $ 37,861 Other fxxed costs