Beginning cash balance $ 69,000 $ 140,780 (X 151,898 X Cash receipts from customers 540,000 534,000 532,200 Total cash available 609,000 674,780 684,098 Cash payments for: Raw materials 178,700 185,800 192,500 Direct labor 189,200 219,560 203,940 Variable overhead 29,240 33,932 31,518 Sales commissions 43,200 40,800 49,680 Sales salaries 3,700 3,700 3,700 General & administrative salaries 19,000 19,000 19,000 Dividends 17,000 Loan interest 190 ) Long-term note interest 3,090 () 3,090 3,090 Purchases of equipment 137,000 Taxes paid X Total cash payments 466,320 522,882 640,428 Preliminary cash balance 142,680 151,898 X 43,670 (X Additional loan (loan repayment) (1,900) X 11,330 (x Ending cash balance $ 140,780 X $ 151,898 55,000Purchases of equipment 137,000 Taxes paid X Total cash payments 466,320 522,882 640.428 Preliminary cash balance 142.680 151.898 X 43,670 (X) Additional loan (loan repayment) (1.900) 11,330 X Ending cash balance 140,780 *$ 151,898 55,000 Loan balance April May June Loan balance - Beginning of month S 1.900 X 0 0 Additional loan (loan repayment) (1,900) X 11.330 Loan balance - End of month 0 11/330Budgeted Income Statement For Three Months Ended June 30, 2019 Sales $ 1,671,000 Cost of goods sold 1.347.940( Gross profit 323,060() Operating expenses Sales commissions 133,680 Sales salaries 11,100 General administrative salaries 57,000 Long-term note interest 9,270 Total operating expenses 211,050 Income before taxes 112.010 Income tax 44.804 Net income 67.206The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash 69,000 Accounts receivable 432,000 Raw materials inventory 86,000 Finished goods inventory 348,480 Total current assets 935,480 Equipment 614,000 Accumulated depreciation (157,000) Equipment, net 457,000 Total assets $ 1,392,480 Liabilities and Equity Accounts payable 178,700 Short-term notes payable 19,000 Total current liabilities 197,700 Long-term note payable 515,000 Total liabilities 712,700 Common stock 342,000 Retained earnings 337,780 Total stockholders' equity $79,780 Total liabilities and equity $ 1,392,480 To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 18,000 units. Forecasted sales in units are as follows: April, 18,000; May, 17,000; June, 20,700; and July, 18,000. Sales of 247,000 units are forecasted for the entire year. The product's selling price is $30.00 per unit and its total product cost is $24.20 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 4,300 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,700 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. c. Company policy 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 14,400 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $22 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $27,850 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,700. g. Monthly general and administrative expenses include $19,000 administrative salaries and 0.6% 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). i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. j. The minimum ending cash balance for all months is $55,000. 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 $17,000 are to be declared and paid in May. I. 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 $137,000 are budgeted for the last day of June.8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet.ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Cash 55,000 Accounts receivable Raw materials inventory Finished goods inventory Total current assets 55,000 Equipment Accumulated depreciation Equipment, net 0 Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity