The management of Nabar manufucturing prepared the followin estimated balance sheet for june, 2015:

NABAR MANUFACTURING

Estimated Balance Sheet

June 30, 2015

Asset	Liabiliies and Equity
cash $40,000	Accountings Payable $51,400
Accounts receivable 249,900	Income taxws payable 10,000
Raw materials Invetory 35,000	Short-term notes payable 24,000
Finished goods Inventory 241,080	Total current liabilities 85,400
Total current assets 565,980	Long-term note payable 300,000
Equipment, Gross 720,000	Total liabilities 385,400
Accumulated depreciation (240,000)	Common stock 600,000
Equipment, net 480,000	Retained earnings 60,000
	Total stockholder's equity 660,580
Total assets $1,045,980	Total liabilities and equity $1,045,980

To prepare a master badget for july, August, and September of 2015, management gathers the following information:

a) Sales were 20,000 units in June, Forecastes sales in units are as follows: July, 21,000; August, 19,000; september, 20,000; October, 24,000. The product's selling price is $17 per unit and it's total product cost is $14.35 per units.

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 invetory 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 $8 per unit. Each finished unit requires 0.50 units of raw of 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 hour. The predetermined varialable overhead rate is 2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead.

f) Monthy 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 for sales. The sales manager's monthly salary is $3,500 per month.

h) The company expects 30% of sales to be for cash and the remaining 70% on credits. 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 full paid in the next month.

j) Dividents of $20,000 are to be declared and paid in August.

k) Income taxes paid at June 30 will paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October.

l)Equipement purchases of $100,000 are budgeted for the last day of September.

m) The minimum ennding 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 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.