Chapter 7 question 10The management of Zigby manufacturing prepared the following estimated balance sheet for March 2019 AssetsCash $56,000Accounts receivable $341,250Raw materials inventory $84,200Finished goods inventory $337,680Total current assets $819,130Equipment $632,000Accumulated depreciation (166,000)Equipment, net 466,000Total assets $1,285,130 Liabilities and equity Accounts payable $189,800Short term notes payable $28,000Total current liabilities $217,800Long term note payable $516,000Total liabilities $733,800Common stock $351,000Retained earnings $200,330Total stockholders equity $551,330In the picture it continues K-dividends of $26,000 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 $146,000 are budgeted for the last day of June It has blue fill in the blank charts wanting me to complete 1. Sales budget 2. Production budget 3. Raw materials budget

Check my work 10 a. Sales for March total 21,000 units. Forecasted sales in units are as follows: April, 21,000; May, 15,800; June, 21,600; and July, 21,000. Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.10 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 4,210 units, which complies with the policy. The expected June 30 ending raw materials oints inventory is 5,600 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. Skipped 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 16,800 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $12 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.30 per direct labor hour. eBook Depreciation of $37,960 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salary is Print $4,600 g. Monthly general and administrative expenses include $28,000 administrative salaries and 0.5% monthly interest on the long-term note payable. h. The company expects 35% of sales to be for cash and the remaining 65% on credit. Receivables are collected in full in the month following the sale (rione 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 $56,000. 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. Mc Graw 10 of 10