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

ZIGBY MANUFACTURING

Balance Sheet

March $31$

Assets Liabilities and Equity

Cash $ $176,000$ Liabilities

Accounts receivable $1,515,360$ Accounts payable $ $884,400$

Raw materials inventory $433,400$ Loan payable $12,000$

Finished goods inventory $1,432,376$ Long$-$term note payable $2,200,000$ $ $3,096,400$

Equipment $ $2,640,000$ Equity

Less: Accumulated depreciation $660,0001,980,000$ Common stock $1,474,000$

Retained earnings $966,7362,440,736$

Total assets $ $5,537,136$ Total liabilities and equity $ $5,537,136$

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

Sales for March total $90,200$ units. Budgeted sales in units follow: April, $90,200$; May, $85,800$; June, $88,000$; and July, $90,200.$ The product$$s selling price is $$24\mathrm{.}00$ per unit and its total product cost is $$19\mathrm{.}85$ per unit.

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 $21,670$ pounds. The budgeted June $30$ ending raw materials inventory is $17,600$ pounds. Each finished unit requires $0\mathrm{.}50$ pound of direct materials.

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 $72,160$ units.

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

The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$88,000$ per month is the only fixed factory overhead item.

Sales commissions of $8\%$ of sales are paid in the month of the sales. The sales manager$$s monthly salary is $$13,200.$

Monthly general and administrative expenses include $$52,800$ for administrative salaries and $0\mathrm{.}9\%$ monthly interest on the long$-$term note payable.

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$).$

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$).$

The minimum ending cash balance for all months is $$176,000.$ 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.

Dividends of $$44,000$ are budgeted to be declared and paid in May.

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.

Equipment purchases of $$440,000$ are budgeted for the last day of June.

Required:

Schedule of cash receipts.

Schedule of cash payments for direct materials..

Cash budget.

Budgeted income statement for entire second quarter $($not monthly$).$

Budgeted balance sheet at June $30.$