e management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross $ 69,000 432,000 86,000 935,480 614,000 Equipment, net Total assets $ 1,392,480 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities $ 178,700 19 Long-term note payable Total liabilities Common stock 197,700 515,000 712,700 342,000 Retained earnings Total stockholders' equity Total iabilities and equity 337 679.780 $ 1,392,480 To prepare a master budget for April, May, and June of 2017, 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 entre 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 cals fora given month's ending finished goods inventory to equal 80% of the next month's expected unit sales Th 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 Depreciation of $27,850 per month is treated as fixed factory overhead t. 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 S 19,000 administrative salaries and 0.6% monthly interest on the long-term no company expects 20% of sales to be for cash and the remaining 80% on credit Receivables are oolected in full in the month following the sale (none are collected in the month of the sale) l. All raw material's purchases are on credit, and no payables arise from any other transactions. One month's raw materials 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 not to reach the minimum. Short-term notes r eres paymertof 1% at each month-end before any repay equire an ent "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. Requied Prepare the following and other financial information as required. All budgets and other financial information should be prepared the sepond calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar, except for the amount o les, which should be rounded down to the nearest whole dollar.): 1. Sales 2. 3. Ray materials 4. Difect labor budget