The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-ters notes payable Total current liabilities Long-term note payable Total liabilities Coomon stock Retained earnings Total stockholders' equity Total 11 abilities and equity 40,00 342, 248 98,500 325, 540 886, 288 600,000 (150,000 450,00 $ 1,256,288 5 200, 500 12,000 212,500 500.000 712,500 335,000 208,28 543788 $1,256,288 To prepare a master budget for April, May, and June of 2019, management gathers the following information o. Sales for March total 20.500 units. Forecasted sales in units are as follows: April, 20,500; May, 19500, June, 20,000, and July 20,500 Sales of 240,000 units are forecasted for the entire year. The product's selling price is $23.85 per unit and its total product cost is $19.85 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 4,925 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 4,000 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 16,400 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour e Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $2.70 per direct labor hour Depreciation of $20,000 per month is treated as foed 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 $3,000 g. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable 9. Monthly general and administrative expenses include $12.000 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) L. 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 $40.000. 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 $10,000 are to be declared and paid in May 1. No cash payments for income taxes are to be made during the second calendar quartet Income tax will be assessed at 35% in the m. Equipment purchases of $130,000 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