March 31, 2015 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory S 80,000 487,500 93.390 438,000 Total current assets Equipment, gross Accumulated depreciation 1.098,890 640,000 170,000) Equipment, net 470,000 Total assets 5 1,568,890 Liabilities and Equity Accounts payable Short-term notes poyable 215,690 32,000 Total current liabilities Long-term note payable 247,690 520,000 Total liabilities Common stock Retained eornings 767,690 355.000 446.200 Total stockholders' equity 801,200 Total liobilities and equity $1,568.890 To prepare a master budget for April, May, and June of 2015, management gothers the following information. a. Sales for March total 25,000 units. Forecasted sales in units ore as follows: April, 25,000; May, 17100; June, 22,300; July, 25,000. Sales of 260,000 units ore forecasted for the entire year. The product's seling price is $26.00 per unit and its total product cost is $21.90 per unit. b. Company policy cells for a given month's ending raw materials inventory to equal 50% of the next month's moterials requirements. The March 31 row materials inventory is 4,670 units, which complies with the policy. The expected June 30 ending raw materials inventory is 6,000 units. Row materials cost $20 per unit. Eoch finished unit requires 0.50 units of raw materials. c. Company policy calls for 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 20,000 units, which complies with the policy d. Eoch finished unit requires 0.50 hours of direct labor at a rate of $16 per hour e. Overhead is allocated based on clirect labor hours. The predetermined variable overhead rote is $4.00 f. Sales representatives, commissions ore 10% of sales na are paid in the month of the sales. The sales g. Monthly general and administrative expenses include $21,000 administrative sole ries and 0.9% monthly h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are i. All raw materials purchases are on credit, ond no payables orise from any other transactions. One month's per direct labor hour. Depreciation of $40,790 per month is treated os fixed factory overhead. manager's monthly salary is $5,000 interest on the long-term note payable collected in full in the month following the sale (none is collected in the month of the sale). row materials pur cosh using a short-term note to reach the minimum. Short-term notes require an interest poyment be opplied to repaying the short-term notes payable balonce chases are fully paid in the next month. J. The minimum ending cash balance for all months is $99,000. If necessory, the compony borrows enough of 1% at each month-end (before any repayment-lf the ending cash balance exceeds the minimum, the excess will K. Dividends of $30,000 are to be declared and paid in Moy l. No cosh payments for income taxes are to be made during the second colender quarter. Income tox will be assessed at 40% in the quarter ond poid in the third calencar quarter. m. Equipment purchases of $150,000 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 calender quarter, except as otherwise noted below. Round colculations up to the nearest whole dollar, except for the omount of cosh sales, which should be rounded down to the nearest whole dollar