The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 20 points ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets $57,000 464, 000 91,600 380,480 993, 080 634,000 eBook 167,000) 467,000 $1,460, 080 Print Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 206, 300 29,000 235,300 520,000 755, 300 352,000 352,780 704, 780 $1,460, 080 References To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 23,200 units. Forecasted sales in units are as follows: April, 23,200; May, 17,100; June, 21,900; and July 23,200. Sales of 257,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.50 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 4,580 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,700 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 18,560 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $13 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.40 per direct labor hour f. Sales representatives, commissions are 5% of sales and are paid in the month of the sales. The sales manager's monthly salary is g. Monthly general and administrative expenses include $29,000 administrative salaries and 0.8% monthly interest on the long-term 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 i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases j. The minimum ending cash balance for all months is $99,000. If necessary, the company borrows enough cash using a short-term Depreciation of $37,320 per month is treated as fixed factory overhead. $4,700 note payable following the sale (none are collected in the month of the sale) are fully paid in the next month. note to reach the minimum. Short-term notes require an interest payment of 196 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 $27000 are to be declared and paid in May 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 m. Equipment purchases of $147,000 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 dollan except for the amount of cash sales, which should be rounded down to the nearest whole dollar.) Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 Required 9 Required 10 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: April May June Total budgeted sales Cash sales Sales on credit 580,000427,500547,500 109,500 80% $ 464,000|$. 342,000$ 438,000 20% 116,000 85,500 Total cash receipts from customers May $116,000 85,500109,500 April June Current month's cash sales Collections of receivables Total cash receipts 464,000 464,000 342,000 $580,000 $ 549,500$ 451,500 ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April May June 57,000 580,000 637,000 Beginning cash balance ash receipts from customers 549,500 451,500 Total cash available Cash payments for: 196,300 136,110 46,068 21,375 4,700 29,000 27,000 Raw materials 206,300 119,080 40,304 29,000 4,700 29,000 219,400 149,110 50,468 27,375 4,700 29,000 Direct labor ariable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment 290 4,160 4,160 4,160 147,000 464,713 631,213 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 432,834 204,166 Loan balance April May June Loan balance Beginning of month Additional loan (loan repayment) Loan balance End of month Required 7 Required 9> Pre1 of 1i Next 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 b Required 1 Required 2 Required 3 Required 4Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses 0 0 0 Required 8 Required 10> 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 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity