g. Monthly general and administrative expenses include $30,000 administrative salaries and 1.0% monthly interest on the long-term note payable. h. The company expects 25% of sales to be for cash and the remaining 75% 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. DOVER MANUFACTURING Balance Sheet As of March 31, 2019 Assets Cash Accounts receivable Raw Materials Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total Assets Liabilities and Equity $ 40,000 Accounts payable 360,000 Short-term notes payable 130,000 Total current liabilities 384,000 Long-term note payable 914,000 Total liabilities 600,000 Common stock (140,000) Retained earnings 460,000 Total stockholders' equity 1,374,000 Total liabilities and equity $ 200,000 20,000 200.000 500,000 700,000 335,000 339,000 674,000 $ 1,374,000 $ To prepare a master budget for April, May, and June of 2019, management gathers the following information: Sales for March total 15,000 units. Forecasted sales in units are as follows: The following check figures are also noted for you: (2) Units to produce: April, 21,600; May, 24,400 (3) Cost of raw materials purchases: April, $208,000; May $251,000 (5) Total factory overhead cost: May, $146,000 (8) Ending cash balance: April $40,000; May, $42,170 (9) Total net income (approximately $225,000) (10) Balance Sheet (supporting schedules provided to assist in calculations, remember that Assets must equal Liabilities + Stockholders' equity g. Monthly general and administrative expenses include $30,000 administrative salaries and 1.0% monthly interest on the long-term note payable. h. The company expects 25% of sales to be for cash and the remaining 75% 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. DOVER MANUFACTURING Balance Sheet As of March 31, 2019 Assets Cash Accounts receivable Raw Materials Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total Assets Liabilities and Equity $ 40,000 Accounts payable 360,000 Short-term notes payable 130,000 Total current liabilities 384,000 Long-term note payable 914,000 Total liabilities 600,000 Common stock (140,000) Retained earnings 460,000 Total stockholders' equity 1,374,000 Total liabilities and equity $ 200,000 20,000 200.000 500,000 700,000 335,000 339,000 674,000 $ 1,374,000 $ To prepare a master budget for April, May, and June of 2019, management gathers the following information: Sales for March total 15,000 units. Forecasted sales in units are as follows: The following check figures are also noted for you: (2) Units to produce: April, 21,600; May, 24,400 (3) Cost of raw materials purchases: April, $208,000; May $251,000 (5) Total factory overhead cost: May, $146,000 (8) Ending cash balance: April $40,000; May, $42,170 (9) Total net income (approximately $225,000) (10) Balance Sheet (supporting schedules provided to assist in calculations, remember that Assets must equal Liabilities + Stockholders' equity