Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts Materials purchases Cash payments for Current period purchases Prior period purchases Total cash payments Beginning cash balance ZIBGY MANUFACTURING Schedule of Cash Receipts April Total cash available Less: Cash payments for: $ $ Schedule of Cash Payments for Direct Materials April $ $ $ May 1,869,600 $ 1,778,400 $ 1,824,000 560,880 533,520 1,308,720 1,308,720 1,869,600 $ 1,842,240 $ Cash Budget 752,400 $ 0 April $ 763,800 763,800 $ May 765,700 May + 0 $ $ 0 $ June -|| || | 547,200 1,244,880 1,792,080 June 691,600 June 0 0 ____________

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. a. Sales for March total 77,900 units. Budgeted sales in units follow: April, 77,900; May, 74,100; June, 76,000; and July, 77,900. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit b. Raw materials inventory consists sololy of direct malorials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 18,715 pounds. The budgeted June 30 ending raw materials inventory is 15,200 pounds. Each finished unit requires 0.50 pound of direct materials. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 62,320 units. d. Each finished unit requires 0.50 hour of direct labor at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $76,000 per month is the only fixed factory overhead item. 1. Sales commissions of 8% of soles are paid in the month of the sales. The sales manager's monthly salary is $11,400. 9. Monthly generol and administrative expenses include $45,600 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 saies are collected in the month of sale). 1. All raw materials purchases are on credit, and accounts poyable 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 $152,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 18 at each month-end (before any repayment). If the month-end preilminary cash balance exceeds the minimum, the excess will be used to repoy any loans. k. Dividends of $38,000 are budgeted to be declared and paid in Moy. 1. No cash payments for income taxes ore budgeted in the second calendar quartec. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $380,000 are budgeted for the last day of June