The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 80.000 Accounts receivable 364,000 Raw materials inventory 96,000 Finished goods inventory 364,880 Total current assets 904,800 Equipment, gross 610,000 Accumulated depreciation (155,880) Equipment, net 455,000 Total assets $1,359,800 Liabilities and Equity Accounts payable $ 195,500 Short-term notes payable 17,000 Total current liabilities 212,500 Long-term note payable 510,000 Total liabilities 722,500 Common stock 340,000 Retained earnings 297,380 Total stockholders' equity 637,380 Total liabilities and equity $1,359,880 forecast for the To prepare a master budget for April May and June of 2017, management when the following information a. Selles for March 18.000 units Forecasted sales in units are as follows: Apr, 18.00: May. 17.009 June 20.700 and July 18.000. Solo of 247.000 entire year. The producto sing prices $30.00 per unit and total product costs $24 20 per unit b. Company policy for a given montsending raw ma t ory to of the mom nts. The Mar 31 wa which complies with the policy. The expected June 30 ending raw materials inventory is 4.700 units Raw cost $20 perunt. Each fish 4300 r to .50 e. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next montes expected units. The March 31 finished goods is 14.400 which complies with the policy d. Each finished unit requires 0.50 hours of direct laborate of 522 per hour Overhead is allocated based on direct labor hours. The predetermined ble overhead is $3.40 per director hour. Depreciation of $27.850 per month is tr a sed L. Sales representatives commissions are 8% of sales and are paid in the month of the sales. The sales manager's more salary is $3.700 Monthly general and administrative expenses include $19.000 administrative salaries and monthly interest on the long-term not payable h. The company expects 20% of sales to be for cash and the remaining on on credit Receiv e collected in the month following the sale on rece n te o These Al wa s purchases are on credit and no payables are from any other transactions. One months wa s purchases are fully paid in the more The minimum ending a balance for all months $55.000 , the company bong dugha w n ing a short n g o ch The Short an interest payment of 1% at each month and before any repayment), manding cash balance exceeds the minimum, the wil be applied to paying the short payable balance k Dividends of $17.000 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 set 40% in the quarter and paid in the c u re m. Equipment purchase of $137.000 are buted for the last day of June Required: Prepare the following budgets and other financial information as required. All budgets and other financial mation should be prepared for the second dara t as otherwise noted below. Round calculations up to the man who do not for the amount of cashewch should be rounded down th e whole 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 Required 1 Required 2 Required 3 Required 4 Required 5 Required 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 30% 70% Total cash receipts from customers April Current month's cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April June Beginning cash balance Total cash available Cash payments for 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 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 Selling expense budget. Total ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May 540,000 $ 510,000 8% 43,200 $ 40,800 3,700 3,700 46,900 $ 44,500 $ Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling expenses 8% June || 621,000 8% 49,680 3,700 53,380 $ $ 133,680 11,100 144,780 $ $ 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 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May Salaries $ 19,000 $ 19,000 $ interest on long-term note 3,060 3,060 Total budgeted G&A expenses $ 22,060 $ 22,060 $ Total 57,000 $ June 19,000 3,060 22,060 9,180 66,180 $ The management of Zigby Manufacturing prepared the following es 21GBY 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 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 $ 80,000 364,000 96,000 364,800 904,800 610,000 (155, 000) 455,000 $1,359,800 $ 195,500 17,000 212,500 510,000 722,500 340,000 297, 300 637, 300 $1,359,800 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 20,000 units. Forecasted sales in units are as follows: April, 20,000; May, 19,000; June, 19,500; and July, 20,000. Sales of 245,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $22.80 per unit. or 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 4,800 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 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 16,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $20 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.20 per direct labor hour. Depreciation of $23,400 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3.500 9. Monthly general and administrative expenses include $17,000 administrative salaries and 0.9% monthly interest on the long- term note payable. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) 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 $45,000. 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 $15,000 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 35% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $135,000 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. The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash $ 80.000 Accounts receivable 364,000 Raw materials inventory 96,000 Finished goods inventory 364,880 Total current assets 904,800 Equipment, gross 610,000 Accumulated depreciation (155,880) Equipment, net 455,000 Total assets $1,359,800 Liabilities and Equity Accounts payable $ 195,500 Short-term notes payable 17,000 Total current liabilities 212,500 Long-term note payable 510,000 Total liabilities 722,500 Common stock 340,000 Retained earnings 297,380 Total stockholders' equity 637,380 Total liabilities and equity $1,359,880 forecast for the To prepare a master budget for April May and June of 2017, management when the following information a. Selles for March 18.000 units Forecasted sales in units are as follows: Apr, 18.00: May. 17.009 June 20.700 and July 18.000. Solo of 247.000 entire year. The producto sing prices $30.00 per unit and total product costs $24 20 per unit b. Company policy for a given montsending raw ma t ory to of the mom nts. The Mar 31 wa which complies with the policy. The expected June 30 ending raw materials inventory is 4.700 units Raw cost $20 perunt. Each fish 4300 r to .50 e. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next montes expected units. The March 31 finished goods is 14.400 which complies with the policy d. Each finished unit requires 0.50 hours of direct laborate of 522 per hour Overhead is allocated based on direct labor hours. The predetermined ble overhead is $3.40 per director hour. Depreciation of $27.850 per month is tr a sed L. Sales representatives commissions are 8% of sales and are paid in the month of the sales. The sales manager's more salary is $3.700 Monthly general and administrative expenses include $19.000 administrative salaries and monthly interest on the long-term not payable h. The company expects 20% of sales to be for cash and the remaining on on credit Receiv e collected in the month following the sale on rece n te o These Al wa s purchases are on credit and no payables are from any other transactions. One months wa s purchases are fully paid in the more The minimum ending a balance for all months $55.000 , the company bong dugha w n ing a short n g o ch The Short an interest payment of 1% at each month and before any repayment), manding cash balance exceeds the minimum, the wil be applied to paying the short payable balance k Dividends of $17.000 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 set 40% in the quarter and paid in the c u re m. Equipment purchase of $137.000 are buted for the last day of June Required: Prepare the following budgets and other financial information as required. All budgets and other financial mation should be prepared for the second dara t as otherwise noted below. Round calculations up to the man who do not for the amount of cashewch should be rounded down th e whole 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 Required 1 Required 2 Required 3 Required 4 Required 5 Required 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 30% 70% Total cash receipts from customers April Current month's cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April June Beginning cash balance Total cash available Cash payments for 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 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 Selling expense budget. Total ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May 540,000 $ 510,000 8% 43,200 $ 40,800 3,700 3,700 46,900 $ 44,500 $ Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling expenses 8% June || 621,000 8% 49,680 3,700 53,380 $ $ 133,680 11,100 144,780 $ $ 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 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May Salaries $ 19,000 $ 19,000 $ interest on long-term note 3,060 3,060 Total budgeted G&A expenses $ 22,060 $ 22,060 $ Total 57,000 $ June 19,000 3,060 22,060 9,180 66,180 $ The management of Zigby Manufacturing prepared the following es 21GBY 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 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 $ 80,000 364,000 96,000 364,800 904,800 610,000 (155, 000) 455,000 $1,359,800 $ 195,500 17,000 212,500 510,000 722,500 340,000 297, 300 637, 300 $1,359,800 To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 20,000 units. Forecasted sales in units are as follows: April, 20,000; May, 19,000; June, 19,500; and July, 20,000. Sales of 245,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $22.80 per unit. or 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 4,800 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,500 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 16,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $20 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.20 per direct labor hour. Depreciation of $23,400 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3.500 9. Monthly general and administrative expenses include $17,000 administrative salaries and 0.9% monthly interest on the long- term note payable. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) 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 $45,000. 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 $15,000 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 35% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $135,000 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