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

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019
Assets
Cash	$	48,000
Accounts receivable		438,750
Raw materials inventory		87,900
Finished goods inventory		383,760
Total current assets		958,410
Equipment		616,000
Accumulated depreciation		(158,000	)
Equipment, net		458,000
Total assets	$	1,416,410
Liabilities and Equity
Accounts payable	$	187,200
Short-term notes payable		20,000
Total current liabilities		207,200
Long-term note payable		508,000
Total liabilities		715,200
Common stock		343,000
Retained earnings		358,210
Total stockholders equity		701,210
Total liabilities and equity	$	1,416,410

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

1. Sales for March total 19,500 units. Forecasted sales in units are as follows: April, 19,500; May, 17,100; June, 21,300; and July, 19,500. Sales of 248,000 units are forecasted for the entire year. The products selling price is $30.00 per unit and its total product cost is $24.60 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 4,395 units, which complies with the policy. The expected June 30 ending raw materials inventory is 4,800 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 15,600 units, which complies with the policy.
4. Each finished unit requires 0.50 hours of direct labor at a rate of $23 per hour.
5. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.40 per direct labor hour. Depreciation of $27,020 per month is treated as fixed factory overhead.
6. Sales representatives commissions are 7% of sales and are paid in the month of the sales. The sales managers monthly salary is $3,800.
7. Monthly general and administrative expenses include $20,000 administrative salaries and 0.5% monthly interest on the long-term note payable.
8. The company expects 25% of sales to be for cash and the remaining 75% 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 $48,000. 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 $18,000 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 $138,000 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.

ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 May April June Beginning cash balance Cash receipts from customers Total cash available Cash payments for 48,000 585,000 567,000 544,500 633,000 Raw materials 187,200 190,200 201,600 235,290 Direct labor 202,170 228,390 29,886 Variable overhead 34,782 33,762 Sales commissions 40,950 35,910 44,730 3,800 Sales salaries 3,800 3,800 General& administrative salaries 20,000 20,000 20,000 Long-term note interest 2,540 2,540 2,540 Purchases of equipment 138,000 0 General & administrative salaries 20,000 20,000 20,000 Long-term note interest 2,540 2,540 2,540 Purchases of equipment 0 0 138,000 Dividends 0 18,000 Loan interest 200 Taxes paid 0 Total cash payments Preliminary cash balance Additional loan (loan repayment) 540,522 672,822 486,746 (2,000) Ending cash balance Loan balance April May June Loan balance -Beginning of month Additional loan (loan repayment) 126,454 X Loan balance -End of month ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Sales commissions Sales salaries General administrative salaries Long-term note interest Bank loan interest expense Total operating expenses 0 Income before taxes Total operating expenses Income before taxes Income tax Net income 0 Required 8 Required 10 ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Cash 48,000 Accounts receivable 479,250 Raw materials inventory 96,000 Finished goods inventory 383,760 Total current assets $1,007,010 $ 754,000 Equipment (239,060) Accumulated depreciation Equipment, net 514,940 $1,521,950 Total assets Liabilities and Equity I iahilities Equipment, net 514,940 $1,521,950 Total assets Liabilities and Equity Liabilities Accounts payable Income taxes payable Bank loan payable Total current liabilities Long-term note payable 508,000 Stockholders' Equity $ 343,000 Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity