The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017 Recent Segele $8.50 see.de Lalities and towity Short tentes Tetal current l Long tere not a y e s ble To prepare mer budget for April, Mey, and June of 2017, management gathers the following information: a. Seles for March to 20 500 unit Forecasted sales in units are as follows: April, 20.500: May, 19500June, 20.000and July 20.500. Sales of 240.000 uns 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 un b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materiais requirements The March 31 moteris nemory 4,925 s, which complies with the policy. The expected June 30 ending raw materials inventory 4.000 units Raw materials cost $20 per unit Each finished unit requires 0.50 units of raw materials cCompany policy cells fore given month's ending finished goods inventory to equal 80% of the next month's expected unit sales The Merch 31 finished goods inventory is 16.400 units, which complies with the policy. d. Each finished unit regumes 0.50 hours of laboratorete of $15 per hour e. Overhead listed based on relebor hours. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $20.000 per month is treated as foxed factory overhead. L Sales representatives commissions are 89 of sales and are paid in the month of the sales. The sales manager's monthly salary is $3.000 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 remetriols purchases are on creat, and no peyebles grise from any other transactions. One month's raw materiala purchases are fully paid in the next month The minimum ending cash balance for all months is $40.000 necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 19 at each month-end before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repoying the short-term notes payable balance k. Dividends of $10,000 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 assessed at 35% in the quarter and paid in the third calendar quarter m. Equipment purchases of $130,000 ore budgeted for the last day of June ZIGBY MANUFACTURING Raw Material Budget April, May, and June 2017 April Tate Production budget units 9700 990 M s quirements per unit needed for production 9.50 9.950 1975 5.100 2.25 050 Budgeted ending inventory Total maten is requirements funt Beginning inventory Materials to be purchased Material price per unit Budgeted raw material purchases 4.625 2005 92.500 ZIGBY MANUFACTURING Direct Labor Budget April, May, and June 2017 April May Budgeted production (unis) -- Total labor hours needed | Budgeted direct labor cosi ZIGBY MANUFACTURING Factory Overhead Budget April, May and June 2017 April May sbor hours needed Busted varsable overhead Buduated fixed overhead Budgeted total overhead Required 4 Required 6 > Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget Apri, May, and June 2017 April May Budgeted sales Recuted 7 > General and administrative expense budget ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June 0 Total buigend GBA expenses s o Required 6 Required 3 > CLIWI Minos sign.) Calculation of Cash receipts from customer Total budgeted sales Cash sales Total cash roapte from customers April Current month's cash sales Collections of receivables Total cash receipts ZIGBY MANUFACTURING Cash Budget Aprili, May, and June 2017 April Beginning cash balance Total cash available Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan Dalance April Loan balance Beginning of Additional loan luan repayant) Loan balance End of month Required 7 Required ) ZIGBY MANUFACTURING Budgeted Income Statement For Three Month Ended June 30, 2017 Operating expenses Total operating expenses eta batance sheet (Round your final answers to the nearest whole dollar ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity