The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 53,000 Accounts receivable 392,400 Raw materials inventory 96,600 Finished goods inventory Total current assets 855,920 Equipment, gross 626,000 Accumulated depreciation (163, 000) Equipment, net 463,000 Total assets $1,318,920 Liabilities and Equity Accounts payable $ 204,800 Short-term notes payable 25,000 Total current liabilities 229,800 Long-term note payable 520,000 Total liabilities 749,800 Common stock 348,000 Retained earnings 221, 120 Total stockholders' equity 569, 120 Total liabilities and equity $1,318,928 1 of 5 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 21,800 units. Forecasted sales in units are as follows: April, 21,800, May 18,700, June, 21,000, and July, 21,800. Sales of 253,000 units are forecasted for the entire year. The product's selling price is $22.50 per unit and its total product cost is $18.00 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,830 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 5,300 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials C. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales The March 31 finished goods inventory is 17,440 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct laborat a rate of $9 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour Depreciation of $30.750 per month is treated as fixed factory overhead f. Sales representatives' commissions are 8% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,300. 9. Monthly general and administrative expenses include $25.000 administrative salaries and 0.7% monthly interest on the long term note payable h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale inone are collected in the month of the sale) 1 All row 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 1. The minimum ending cash balance for all months is 553.000. If necessary, the company borrows enough cash using a short term note to reach the minimum Short term notes require an interest payment of 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. k. Dividends of $23.000 are to be declared and paid in Miny L. No cash payments for income taxes are to be made during the second calendar quarter Income tax will be assessed at 40 in the Quarter and paid in the third calendar Quarter to 5 Next > LINY LUST OORL LALLUS ULTTUR, URLALU LUPPIILU ILUyuyur k. Dividends of $23,000 are to be declared and paid in May. I. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $143,000 are budgeted for the last day of June. Required: Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. (Round calculations up to the nearest whole dollar except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) 1. Sales budget. 2. Production budget. 3. Raw materials budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Selling expense budget 7. General and administrative expense budget. 8. Cash budget 9. Budgeted income statement for the entire second quarter (not for each month separately. 10. Budgeted balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prev 1 of 5 ! Next > N do