The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets ZIGBY MANUFACTURING Balance Sheet March 31 $ 168,000 Liabilities Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation $ 2,520,000 630,000 Total assets Liabilities and Equity 1,446,480 413,700 Accounts payable Loan payable 1,367,268 Long-term note payable Equity 1,890,000 Common stock Retained earnings $ 5,285,448 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. $ 844,200 12,000 2,100,000 $ 2,956,200 1,407,000 922,248 2,329,248 $ 5,285,448 a. Sales for March total 86,100 units. Budgeted sales in units follow: April, 86,100; May, 81,900; June, 84,000; and July, 86,100. 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 solely of direct materials 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 20,685 pounds. The budgeted June 30 ending raw materials inventory is 16,800 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 68,880 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 $84,000 per month is the only fixed factory overhead item. f. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $12,600. g. Monthly general and administrative expenses include $50,400 for administrative salaries and 0.9% monthly interest on the long- term 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 $168,000. 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 loans. k. Dividends of $42,000 are budgeted to be declared and paid in May. I. No cash 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 $420,000 are budgeted for the last day of June. Required: 1. Sales budget. 2. Production budget. 3. Direct materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials.. 10. Cash budget. 11. Budgeted income statement for entire second quarter (not monthly). 12. Budgeted balance sheet at June 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials. 10. Cash budget. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter $0 when applicable. Do not leave cells blank. Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts ZIBGY MANUFACTURING Schedule of Cash Receipts April May June $ 2,066,400 $ 1,965,600 $ 2,016,000 619,920 1,446,480 589,680 1,446,480 604,800 1,375,920 $ 2,066,400 $ 2,036,160 $ 1,980,720 Show less Materials purchases Cash payments for Current period purchases Prior period purchases Total cash payments Beginning cash balance Add: Cash receipts from sales Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance April $ 831,600 $ May 846,300 $ June 764,400 844,200 831,600 846,300 $ 844,200 $ 831,600 $ 846,300 Cash Budget April May June $ 168,000 $ 410,739 $ 594,468 0 0 0 Beginning cash balance Add: Cash receipts from sales Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Cash Budget April $ May 168,000 $ 410,739 $ June 594,468 0 0 0 Loan balance April May June $ 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted income statement for entire second quarter (not monthly). Note: Round your final answers to the nearest whole dollar. ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30 Selling, general and administrative expenses Total operating expenses 0 0 $ 0 < Req 8 to 10 Req 12 > Req 1 Req 2 Req 3 Req 4 Req 5 Req 6 Req 7 Req 8 to 10 Req 11 Req 12 Budgeted balance sheet at June 30. Note: Round your final answers to the nearest whole dollar. ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Total assets Liabilities Equity Total Liabilities and Equity Liabilities and Equity 0 < Req 11 Req 12 >