he following information applies to the questions displayed below.] The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 Assets Cash $ 65,000 Accounts receivable 434,850 Raw materials inventory 87,505 Finished goods inventory 374,640 Total current assets 961,995 Equipment, gross 624,000 Accumulated depreciation (162,000) Equipment, net 462,000 Total assets $ 1,423,995 Liabilities and Equity Accounts payable 199,405 Short-term notes payable 24,000 Total current liabilities $ 223,405 Long-term note payable 520,000 Total liabilities 743,405 Common stock 347,000 Retained earnings 333,590 Total stockholders equity 680,590 Total liabilities and equity $ 1,423,995 To prepare a master budget for April, May, and June of 2015, management gathers the following information. a. Sales for March total 22,300 units. Forecasted sales in units are as follows: April, 22,300; May, 16,300; June, 22,700; July, 22,300. Sales of 252,000 units are forecasted for the entire year. The products selling price is $26.00 per unit and its total product cost is $21.00 per unit. b. Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials inventory is 4,375 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,200 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. c. Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods inventory is 17,840 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.90 per direct labor hour. Depreciation of $31,670 per month is treated as fixed factory overhead. f. Sales representatives commissions are 10% of sales and are paid in the month of the sales. The sales managers monthly salary is $4,200. g. Monthly general and administrative expenses include $24,000 administrative salaries and 0.9% 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 is collected in the month of the sale). i. All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materials purchases are fully paid in the next month. J. The minimum ending cash balance for all months is $62,000. 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 $22,000 are to be declared and paid in May. l. 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 $142,000 are budgeted for the last day of June. Required: Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar: References Section BreakProblem 7-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 1.value: 30.00 pointsRequired information Problem 7-4A Part 1 1. Sales budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 1Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 2.value: 30.00 pointsRequired information Problem 7-4A Part 2 2. Production budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 2Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 3.value: 30.00 pointsRequired information Problem 7-4A Part 3 3. Raw materials budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 3Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 4.value: 30.00 pointsRequired information Problem 7-4A Part 4 4. Direct labor budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 4Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 5.value: 30.00 pointsRequired information Problem 7-4A Part 5 5. Factory overhead budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 5Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 6.value: 30.00 pointsRequired information Problem 7-4A Part 6 6. Selling expense budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 6Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 7.value: 30.00 pointsRequired information Problem 7-4A Part 7 7. General and administrative expense budget. ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 7Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 8.value: 30.00 pointsRequired information Problem 7-4A Part 8 8. Cash budget. (Negative balance and Loan repayment amount should be indicated with minus sign. Round your answers to 2 decimal places.) rev: 03_15_2017_QC_CS-82876 ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 8Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 9.value: 30.00 pointsRequired information Problem 7-4A Part 9 9. Budgeted income statement for the entire second quarter (not for each month separately). rev: 03_28_2017_QC_CS-84103 ReferenceseBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 07-P2 Prepare a cash budget. Problem 7-4A Part 9Learning Objective: 07-P1 Prepare the operating budget components of a master budget-for a manufacturing company.Learning Objective: 07-P3 Prepare budgeted financial statements. Check my work 10.value: 30.00 pointsRequired information Problem 7-4A Part 10 10. Budgeted balance sheet. ReferenceseBook & Resources