The management of Nabar Manufacturing prepared the following estimated balance sheet for June 2019. NABAR MANUFACTURING Estimated Balance Sheet June 30, 2019 $ Assets Cash..... Accounts receivable Raw materials inventory Finished goods inventory.. Total current assets Equipment ... Accumulated depreciation... Equipment, net.. 40,000 249,900 35,000 241,080 565,980 720,000 240,000) 480,000 Liabilities and Equity Accounts payable ....... Income taxes 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 $ 51,400 10,000 24,000 85,400 300,000 385,400 600,000 60,580 660,580 $1,045.980 Total assets..... $1,045,980 To prepare a master budget for July, August, and September of 2019, management gathers the following information: to prepare a master budget for July, August, and September of 2019, management gathers the following information: a. Sales were 20.000 units in June, Forecasted sales in units are as follows: July 21,000. August, 19.000 September, 20,000, and October, 24,000. The product's selling price is $17 per unit and its total prod- uct cost is $14.35 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished goods inventory is 16,800 units, which does not comply with the policy. C. Company policy calls for a given month's ending raw materials inventory to equal 20% of the next month's materials requirements. The June 30 raw materials inventory is 4.375 units (which also fails to meet the policy). The budgeted September 30 raw materials inventory is 1.980 units. Raw materials cost 58 per unit. Each finished unit requires 0.50 units of raw materials. d. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. 1. Monthly general and administrative expenses include $9.000 administrative salaries and 0.9% monthly interest on the long-term note payable. g. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,500. h. The company expects 30% of sales to be for cash and the remaining 70% 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. Dividends of $20,000 are to be declared and paid in August. k. Income taxes payable at June 30 will be paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October 1. Equipment purchases of $100,000 are budgeted for the last day of September. m. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest pay- ment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the mini- mum, the excess will be applied to repaying the short-term notes payable balance. Required Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the third calendar quarter, except as otherwise noted below. Round calculations to the nearest whole dollar. 1. Sales budget. 7. General and administrative expense budget. 2. Production budget. 8. Cash budget. 3. Raw materials budget. 9. Budgeted income statement for the entire quarter (not for each 4. Direct labor budget. month separately). 5. Factory overhead budget. 10. Budgeted balance sheet as of September 30, 2019. 6. Selling expense budget