The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019.

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019
Assets
Cash	$	54,000
Accounts receivable		354,375
Raw materials inventory		100,495
Finished goods inventory		333,000
Total current assets		841,870
Equipment		628,000
Accumulated depreciation		(164,000	)
Equipment, net		464,000
Total assets	$	1,305,870
Liabilities and Equity
Accounts payable	$	212,195
Short-term notes payable		26,000
Total current liabilities		238,195
Long-term note payable		514,000
Total liabilities		752,195
Common stock		349,000
Retained earnings		204,675
Total stockholders equity		553,675
Total liabilities and equity	$	1,305,870

To prepare a master budget for April, May, and June of 2019, management gathers the following information.

1. Sales for March total 22,500 units. Forecasted sales in units are as follows: April, 22,500; May, 19,500; June, 21,700; and July, 22,500. Sales of 254,000 units are forecasted for the entire year. The products selling price is $22.50 per unit and its total product cost is $18.50 per unit.
2. Company policy calls for a given months ending raw materials inventory to equal 50% of the next months materials requirements. The March 31 raw materials inventory is 5,025 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,400 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.
3. Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods inventory is 18,000 units, which complies with the policy.
4. Each finished unit requires 0.50 hours of direct labor at a rate of $10 per hour.
5. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.10 per direct labor hour. Depreciation of $30,790 per month is treated as fixed factory overhead.
6. Sales representatives commissions are 6% of sales and are paid in the month of the sales. The sales managers monthly salary is $4,400.
7. Monthly general and administrative expenses include $26,000 administrative salaries and 0.5% monthly interest on the long-term note payable.
8. 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).
9. All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materials purchases are fully paid in the next month.
10. The minimum ending cash balance for all months is $54,000. 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.
11. Dividends of $24,000 are to be declared and paid in May.
12. 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.
13. Equipment purchases of $144,000 are budgeted for the last day of June.

639,000 693,254 697,232 XXX Total cash available Cash payments for: Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment 187,200 202,170 29,886 40,950 3,800 20,000 190,200 235,290 34,782 35,910 3,800 20,000 18,000 201,600 228,390 33,762 44,370 3,800 20,000 0 0 0 0 0 2,540 2,540 2,540 138,000 0 0 486,546 540,522 672,462 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 0 20,000 Loan balance April May June S 20,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 20,000 Answer is not complete. 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 Factory overhead budget. (Round per unit values to 2 decimal places.) ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2019 April May June Total S 4.10 S 4.10 S 4.10 Labor hours needed Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Answer is not complete. 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 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2019 April May S 585,000 513,000 June Total $ 9 X 6% 6% 6% Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling expenses S 9 S S 1 S 30,790 4,400 30,780 4,400 35,180 4,400 13,200 43,990 S 4.409 S IS 4,401 S Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets S 54,000 162,000 100,495 333,000 S 649,495 144,000 > (164,000) (20,000) S Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Bank loan payable Income taxes payable Total current liabilities Long-term note payable Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity $ 212,195 212,195 514,000 S 349,000 204,675 553,675 Answer is not complete. 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 Cash budget. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Calculation of Cash receipts from customers: May June April 585,000 S IS 2 XS 2% Total budgeted sales Cash sales Sales on credit 30% 3 2 3 70% S 4 S 1 IS 1 Current month's cash sales Collections of receivables Total cash receipts Total cash receipts from customers April May S 146,250 $ 128,250 438,750 438,750 S 585,000 S 567,000 June $ 159,750 384,750 $ 544,500 ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April S 54,000 585,000 639,000 June Beginning cash balance Cash receipts from customers Total cash available May $ 126,254 S 567,000 693,254 152,732 544,500 697,232 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, 2019 Sales $1,737,000 Cost of goods sold 1,424,340 Gross profit 312,660 Operating expenses Sales commissions S 121,590 Sales salaries 11,400 General administrative salaries 60,000 Long-term note interest 7,620 Bank loan interest expense 200 Retained earnings Total operating expenses 200,810 Income before taxes 111,850 Income tax 44,740 Net income S 67,110