The management of Zigby Manufacturing prepared the following balance sheet for March $31.$

$\backslash$table$[[\backslash$table$[[$ZIGBY MANUFACTURING$],[$Balance Sheet$],[$March $31]]],[$Assets$,$Liabilities and Equity$],[$Cash$,,$$$144,000,$Liabilities,,$],[$Accounts receivable,,$1,239,840,$Accounts payable,$$723,600,],[$Raw materials inventory,,$354,600,$Loan payable,$12,000,],[$Finished goods inventory,,$1,171,944,$Long$-$term note payable,$1,800,000,$$$2,535,600],[$Equipment$,$$$2,160,000,,$Equity,,$],[$Less: Accumulated depreciation,$540,000,1,620,000,$Common stock,$1,206,000,],[,,$Retained earnings,$788,784,1,994,784],[$Total assets,,$$4,530,384,$Total liabilities and equity,,$$4,530,384]]$

To prepare a master budget for April, May, and June, management gathers the following information. General and administrative expense budget.

ZIGBY MANUFACTURING

General and Administrative Expense BudgetTo prepare a master budget for April, May, and June, management gathers the following information.

A$.$ Sales for March total $73,800$ units. Budgeted sales in units follow: April, $73,800$; May, $70,200$; June, $72,000$; and July, $73,800.$ The product$$s selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}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 $17,730$ pounds. The budgeted June $30$ ending raw materials inventory is $14,400$ pounds. Each finished unit requires $0\mathrm{.}50$ 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 $59,040$ units.

D$.$ Each finished unit requires $0\mathrm{.}50$ hour of direct labor at a rate of $$15$ per hour.

E$.$ The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$72,000$ 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$$s monthly salary is $$10,800.$

G$.$Monthly general and administrative expenses include $$43,200$ for administrative salaries and $0\mathrm{.}9\%$ 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 $$144,000.$ 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 $$36,000$ are budgeted to be declared and paid in May.

L$.$ 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 calender quarter.

M$.$Equipment purchases of $$360,000$ are budgeted for the last day of June. Schedule of cash receipts.

Schedule of cash payments for direct materials.

Cash budget.

Note: Negative balances and Loan repayment amounts $($if any$)$ should be indicated with minus Do not leave cells blank.

$\backslash$table$[[$ZIBGY MANUFACTURING$],[$Schedule of Cash Receipts$],[,,$April,,May,,June$],[$Sales$,$$$,1,771,200,$$$,1,684,800,$$$,1,728,000],[$Cash receipts from$],[$Cash sales$],[$Collections of prior period sales$],[$Total cash receipts$],[$Schedule of Cash Payments for Direct Materials$],[,,$April,,,,$]]\backslash$table$[[$Schedule of Cash Payments for Direct Materials$],[,$April,$725,400,$$$,655,200],[$Materials purchases,$$,712,800],[$Cash payments for$],[$Current period purchases$],[$Prior period purchases$],[$Total cash payments$],[$Cash Budget$],[,,$April,,May,,June$],[$Beginning cash balance$],[,,,,,,],[$Total cash available$],[$Less: Cash payments for:$],[,,,,,,],[,,,,,,]]\backslash$table$[[$Cash Budget,May,June$],[$Beginning cash balance,April,,$],[,,,],[$Total cash available,,,$],[$Less: Cash payments for:,,,$],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$