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

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019
Assets
Cash	$	80,000
Accounts receivable		487,500
Raw materials inventory		93,390
Finished goods inventory		438,000
Total current assets		1,098,890
Equipment		640,000
Accumulated depreciation		(170,000	)
Equipment, net		470,000
Total assets	$	1,568,890
Liabilities and Equity
Accounts payable	$	215,690
Short-term notes payable		32,000
Total current liabilities		247,690
Long-term note payable		520,000
Total liabilities		767,690
Common stock		355,000
Retained earnings		446,200
Total stockholders equity		801,200
Total liabilities and equity	$	1,568,890

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

1. Sales for March total 25,000 units. Forecasted sales in units are as follows: April, 25,000; May, 17,100; June, 22,300; and July, 25,000. Sales of 260,000 units are forecasted for the entire year. The products selling price is $26.00 per unit and its total product cost is $21.90 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 4,670 units, which complies with the policy. The expected June 30 ending raw materials inventory is 6,000 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 20,000 units, which complies with the policy.
4. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour.
5. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 per direct labor hour. Depreciation of $40,790 per month is treated as fixed factory overhead.
6. Sales representatives commissions are 10% of sales and are paid in the month of the sales. The sales managers monthly salary is $5,000.
7. Monthly general and administrative expenses include $21,000 administrative salaries and 0.9% 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 $99,000. 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 $30,000 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 $150,000 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.): 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet.

June Cash Budget April, May, and June 2019 April S 80,000 650,000 730,000 S May $ 199,510 598,650 798,160 280,720 478,400 759,120 Beginning cash balance Cash receipts from customers 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 215,690 149,440 37,360 65,000 5,000 21,000 199,700 170,080 42,520 44,460 5,000 21,000 30,000 228,600 195,680 48,920 57,980 5,000 21,000 320 4,680 4,680 4,680 150,000 Total cash payments Preliminary cash balance Additional loan (loan repayment) 498,490 231,510 (32,000) 517,440 280,720 711,860 46,730 X 53,000 ......... eeeeeeeeee $ 1,674,400 (1,410,360) 264,040 ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Sales salaries $ 15,000 Sales commissions 167,440 General administrative salaries 63,000 Bank loan interest expense 320 Long-term note interest 14,040 Total operating expenses Income before taxes Income tax Net income 259,800 4,240 1,484 2,756 VO $ 438,000 $1,092,580 $ 790,000 (292,370) 497,630 $1,590,210 Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Income taxes payable Bank loan payable Total current liabilities Long-term note payable Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity $ 242,300 1,484 53,000 X 296,784 520,000 S 355,000 418,426 X 773,426 $1,590,210