Need 3 question answered. 1. The Budgeted Balance Sheet 2. The Income Tax on the Budgeted Income Statement 3. In between "Purchases of Equipment" and "Total Cash Payments" on the Cash Budget...no idea what that is supposed to be.
Return to quest 10 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. 6 points ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 50,000 434,240 84,210 368,000 936, 450 602,000 (151,000) 451,000 $1,387,450 $ 196,610 12,000 208,610 505,000 713,610 336,000 337,840 673,840 $1,387, 450 To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 23,000 units. Forecasted sales in units are as follows: April, 23,000; May, 15,300; June, 20,400; and July, 23,000. Sales of 241,000 units are forecasted for the entire year. The product's selling price is $23.60 per unit and its total product cost is $20.00 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 inventory is 4,100 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. 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 18,400 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 $2.80 per direct labor hour. Depreciation of $21,520 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 manager's monthly salary is $3,100. g. Monthly general and administrative expenses include $13,000 administrative salaries and 0.5% monthly interest on the long-term note payable. h. The company expects 20% of sales to be for cash and the remaining 80% 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. j. The minimum ending cash balance for all months is $41,000. 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 $11,000 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 $131,000 are budgeted for the last day of June. ZIGBY MANUFACTURING Sales Budget April, May, and June 2019 Budgeted Budgeted Unit Unit Sales Price April 2019 23,000 $ 23.60 May 2019 15,300 23.60 June 2019 20,400 23.60 Totals for the second quarter 58,700 Budgeted Sales Dollars $ 542,800 361,080 481,440 $ 1,385,320 ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2019 April May 16,840 19,380 0.50 0.50 June Total 22,480 0.50 11,240 8,420 9,690 4,845 5,620 4,100 Production budget (units) Materials requirements per unit Materials needed for production Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit Budgeted raw material purchases 13,265 15,310 15,340 4,845 4,210 9,055 5,620 9,720 10,465 29,240 $ 20 $ 20 $ 20 $ 20 $ 181,100 $ 209,300 $ 194,400 $ 584,800 Calculation of Cash receipts from customers: $ Total budgeted sales Cash sales April May June 542,800 $ 361,080 361,080 $ 481,440 108,560 72,216 96,288 434,240$ $ 288,864 $ 385,152 20% Sales on credit 80% $ Current month's cash sales Collections of receivables Total cash receipts Total cash receipts from customers April May June $ 108,560$ 72,216 $ 96,288 434,240 434,240 288,864 $ 542,800 $ 506,456 $ 385,152 ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April $ 50,000 $ May June Beginning cash balance Cash receipts from customers Total cash available 542,800 161,289 $ $ 248,430 506,456 385,152 667,745 633,582 592,800 196,610 126,300 209,300 168,600 31,472 Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment olololololololol 23,576 54,280 3,100 13,000 OOOOOOOOO 181,100 145,350 27,132 36,108 3,100 13,000 11,000 48,144 3,100 13,000 0 0 120 0 0 0 2,525 0 0 2,525 131,000 0 5 2,525 0 0 0 419,315 248,430 0 607,141 26,441 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 419,511 173,289 (12,000) $ 161,289 0 14,559 41,000 $ 248,430 $ Loan balance April May June $ 12,000 $ 0 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 0 14,559 (12,000) 0 $ 0 $ 14,559 ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Sales commissions $ 138,532 Sales salaries 9,300 General administrative salaries 39,000 $1,385,320 1,174,000 211,320 >> 186,832 24,488 Total operating expenses Income before taxes Income tax Net income $ 24,488
