Question: help me dolve this Assume the following data for Pet Gear Company: (1) (Click the icon to view the assumptions.) (Cick the icon to viow



Assume the following data for Pet Gear Company: (1) (Click the icon to view the assumptions.) (Cick the icon to viow budgat 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? for Pet Gear Com; v the assumptions.) get for April for Pet managers prepare a Revenue Budget For the Month of April 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 2% 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 $8,300. During April they plan to purchase direct materials worth $12,190. - PG plans to replace a machine in April at a net cash cost of $13,800. - Labor, other manufacturing costs, and (operating) nonmanufacturing costs are paid in cash in the month incuired except of course depreciation, which is not a cash flow. Depreciation is $23,500 of the manufacturing cost and $13,500 of the operating (nonmanufacturing) cost for Aprii. - PG currently has a $2,700 loan at an annual interest rate of 12%. The interest is paid at the end of each month. if PG has more than $7,000 cash at the end of Aprii it will pay back the loan. PG owes $5,200 in income taxes that need to be remitted in April. PG has cash of $5,500 on hand at the end of March
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