The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash 56,000 Accounts receivable 341,250 Raw materials inventory 84,200 Finished goods inventory 337,680 Total current assets 819, 130 Equipment 632,000 Accumulated depreciation (166,000) Equipment, net 466,000 Total assets $1,285,130 Liabilities and Equity Accounts payable $ 189,800 Short-term notes payable 28,000 Total current liabilities 217,800 Long-term note payable 516,000 Total liabilities 733,800 Common stock 351,000 Retained earnings 200,330 Total stockholders' equity 551, 330 Total liabilities and equity $1,285, 130 To prepare a master budget for April, May, and June of 2019, management gathers the following information a. Sales for March total 21,000 units. Forecasted sales in units are as follows: April, 21,000; May, 15,800; June, 21,600; and July, 21000, Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.10 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 4,210 units, which complies with the policy, The expected June 30 ending raw materials inventory is 5,600 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 16,800 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $12 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.30 per direct labor hour, Depreciation of $37,960 per month is treated as fixed factory overhead. 1. Sales representatives' commissions are 7% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,600 9. Monthly general and administrative expenses include $28,000 administrative salaries and 0.5% monthly interest on the long-term note payable n. The company expects 35% of sales to be for cash and the remaining 65% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). 1. All raw 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. J. The minimum ending cash balance for all months is $56,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% 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 $26,000 are to be declared and paid in May. 1. 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 $146,000 are budgeted for the last day of June. 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 35% 65% June Total cash receipts from customers April May Current month's cash sales Collections of receivables Total cash receipts ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April Beginning cash balance May June Total cash available Cash payments for: Total cash payments Preliminary cash balance 0 0 Ending cash balance May June Loan balance April Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2019 Operating expenses Total operating expenses 0 0 $ $ 0 Buagetea balance sneet. (Round your tinai answers to the nearest wnole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Total current assets $ Equipment, net 0 Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity