The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: IGBY MANUPFACTURING Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accurulated depreciation Equipment, net Total assets $56,000 341,250 84,200 337,680 cBook 819,130 632,000 Print (166,000) References 466,000 $1,285,130 Liabilities and Equity ts payable $ 189, 800 28,000 Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders equity Total liabilities equity 217,800 516,000 733,800 351,000 200,330 551,330 and $1,285,130 To prepare a master budget for Aprl, May, and June of 2017, management gathers the following information: a Sales for March total 21,000 units. Forecasted sales in units are as follows: April, 21,000; May, 15,800; June, 21,600; b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials and July, 21,000. Sales of 256,000 units are forecasted for the entire year. The product's selling price is $25.00 per unit and its total product cost is $20.10 per unit. requirements. The March 31 raw materials inventory is 4,210 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,600 unlts. 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 16,800 units, which complies with the pollcy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $12 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.30 per direct f. Sales representatives, commissions are 7% of sales and are paid in the month of the sales. The sales managers g. Monthly general and administrative expenses include $28,000 administrative salaries and 0.5% monthly interest on h. The company expects 35% of sales to be for cash and the remaining 65% on credit. Receivables are collected in full i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw J The minimum ending cash balance for al months is $56,000. If necessary, the company borrows enough cash using labor hour. Depreclation of $37,960 per month Is treated as fixed factory overhead. monthly salary is $4,600. the long-term note payable. in the month following the sale (none are collected in the month of the sale). matcrials purchascs are fully paid in the next month. a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each onth-end (before any repayment). If the ending cash balance cxcceds the minimum, the cxcess will be applied to repaying the short-term notes payable balance. k. Dividends of $26,000 are to be declared and paid in May. I. 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. m. Equipment purchases of $146,000 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