1 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 53, eee Accounts receivable 392,400 Raw materials inventory 96,600 Finished goods inventory 313,920 Total current assets 855,92 Equipment, gross 626,eee Accumulated depreciation (163, eee) Equipment, net 463,888 Total assets $ 1,318,928 Liabilities and Equity Accounts payable $ 284,800 Short-term notes payable 25, eee Total current liabilities 229,800 Long-term note payable 520,000 Total liabilities 749, see Common stock 348, eee Retained earnings 221, 120 Total stockholders' equity 569,120 Total liabilities and equity $ 1,318,920 a. Sales for March total 21.800 units. Forecasted sales in units are as follows: April, 21,800, May, 18,700, June, 21.000; and July 21.800 Sales of 253,000 units are forecasted for the entire year. The product's selling price is $22.50 per unit and its total product cost is $18.00 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements, The March 31 raw materials inventory is 4,830 units, which complies with the policy The expected June 30 ending raw materials Inventory is 5.300 units Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials c. Company polley calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales The March 31 finished goods inventory is 17,440 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $9 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour Depreciation of $30.750 per month is treated as fixed factory overhead. 1. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,300 9. Monthly general and administrative expenses include $25,000 administrative salaries and 0.7% monthly interest on the long-term note payable h. The company expects 20% of sales to be for cash and the remaining 80% on credit Receivables are collected in full in the month following the sale (none are collected in the month of the sale) 1. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases J. The minimum ending cash balance for all months is $53,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum, Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance k. Dividends of $23,000 are to be declared and paid in May 1. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter m. Equipment purchases of $143.000 are budgeted for the last day of June. Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May June Budgeted sales Sales commissions quired 6 Required 7 Required 8 Requir General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Total budgeted G&A expenses Calculation of Cash receipts from customers: April May June Total budgeted sales Cash sales Sales on credit 20% 80% Total cash receipts from customers April May June Current month's cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April May, and June 2017 Calculation of Cash receipts from customers Art May To bugete sa Casais Sales on credit 2016 309 Total cash receipts from customers April Current morts Colections of receives DOBY MANUFACTURING Cash Budget April May and June 2017 April Beginning cash Totalcash payment Preliminary cash balance Ending cash balance Loan balance April Way Loan balance - Beginning of mon Additional content Loan balance - End of month Required) Budgeted income statement for the entire second quarter (not for each month separately). (Round your fir nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required Required 9 Required 10 Budgeted balance sheet. (Round your final answers to the nearest whole dollar) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets 0 Equipment.net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders Equity Total Stockholders' Equity Total Liabilities and Equity