Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross 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 $ 30,000 464,100 98,505 450, 840 1,043, 445 620,000 (160,000) 460,000 $1,503, 445 $ 206, 405 22,000 228, 405 510,000 738, 405 345,000 420,040 765, 040 $1,503, 445 To prepare a master budget for April, May, and June of 2017, management gathers the following information: Calculation of Cash receipts from customers: $ $ Total budgeted sales Cash sales Sales on credit April 663,000 $ 198,900 464,100 $ May 573,000 171,900 401,100 June 585,000 175,500 409,500 30% 70% $ $ Total cash receipts from customers April $ 198,900 464,100 $ 663,000 $ Current month's cash sales Collections of receivables Total cash receipts $ May 171,900 464,100 636,000 June 175,500 401,100 576,600 $ $ ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April $ 30,000 663,000 693,000 May June Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Purchases of equipment Long-term note interest 204,000 246,250 34,4757 39,780 4,000 22,000 195,600 242,750 33,9851 34,3801 4,000 22,000 20,000/ 205,000 269,750 37,765 35,100 4,000 22,000 140,000 4,590 4,590 4,590 Total cash navments 555 095 557 3051 718 205 May June Cash Budget April, May, and June 2017 April $ 30,000 663,000 693,000 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Purchases of equipment Long-term note interest 204,000 246,250 34,475 39,780 4,000 22,000 195,600 242,7501 33,985 34,380 4,000 22,000 20,000 205,000 269,750 37,765 35,100 4,000 22,000 140,000 4,590 4,590 4,590 557,305 718,205 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 555,095 137,905 (22,000) 115,905 $ May June Loan balance April 0 (22,000) $ (22,000) Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month $ Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) 20 points ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Bank loan payable Income taxes payable Total current liabilities o Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross 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 $ 30,000 464,100 98,505 450, 840 1,043, 445 620,000 (160,000) 460,000 $1,503, 445 $ 206, 405 22,000 228, 405 510,000 738, 405 345,000 420,040 765, 040 $1,503, 445 To prepare a master budget for April, May, and June of 2017, management gathers the following information: Calculation of Cash receipts from customers: $ $ Total budgeted sales Cash sales Sales on credit April 663,000 $ 198,900 464,100 $ May 573,000 171,900 401,100 June 585,000 175,500 409,500 30% 70% $ $ Total cash receipts from customers April $ 198,900 464,100 $ 663,000 $ Current month's cash sales Collections of receivables Total cash receipts $ May 171,900 464,100 636,000 June 175,500 401,100 576,600 $ $ ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April $ 30,000 663,000 693,000 May June Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Purchases of equipment Long-term note interest 204,000 246,250 34,4757 39,780 4,000 22,000 195,600 242,750 33,9851 34,3801 4,000 22,000 20,000/ 205,000 269,750 37,765 35,100 4,000 22,000 140,000 4,590 4,590 4,590 Total cash navments 555 095 557 3051 718 205 May June Cash Budget April, May, and June 2017 April $ 30,000 663,000 693,000 Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Purchases of equipment Long-term note interest 204,000 246,250 34,475 39,780 4,000 22,000 195,600 242,7501 33,985 34,380 4,000 22,000 20,000 205,000 269,750 37,765 35,100 4,000 22,000 140,000 4,590 4,590 4,590 557,305 718,205 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 555,095 137,905 (22,000) 115,905 $ May June Loan balance April 0 (22,000) $ (22,000) Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month $ Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) 20 points ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Bank loan payable Income taxes payable Total current liabilities o Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity