Only do "G"

Req 7

The management of Zigby Manufacturing prepared the following balance sheet for March 31 . To prepare a master budget for April, May, and June, management gathers the following information." 9. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.9% monthly interest on the longterm note payable. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). I. All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). J. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any Ifans. k. Dividends of $10,000 are budgeted to be declared and paid in May. 1. No cosh payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100.000 are budgeted for the last day of June. ZIGBY MANUFACTURING General and Administrative Expense Budget \begin{tabular}{|l|l|l|l|l|l|} \hline & April & May & & & \\ \hline Total general and administrative expenses & & & & \\ \hline \end{tabular} Administrative salaries Depreciation expense Equipment purchases Interest on long-term note Land purchase