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 Pinished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 30,000 464,100 98,505 450,840 1,043, 445 620,000 (160,000) 460,000 $1,503, 445 $ 206, 405 22.000 220, 405 510,000 738, 405 345,000 420.040 765,040 $1.503,445 To prepare a master budget for April May, and June of 2019. management gathers the following information 0. Sales for March total 22.100 units Forecasted sales in units are as follows: April, 22.100: May, 19,100; June, 19,500; and July, 22,100 Sales of 250,000 units are forecasted for the entire year. The product's selling price is $30.00 per unit and its total product cost is $25.50 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 4,500 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw material a. Sales for March total 22,100 units. Forecasted sales in units are as follows: April, 22,100; May, 19,100: June 19,500; and July 22,100. Sales of 250,000 units are forecasted for the entire year. The product's selling price is $30.00 per unit and its total product cost is $25.50 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 4,500 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 17,680 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct laborat a rate of $25 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.50 per direct labor hour Depreciation of $25,290 per month is treated as fixed factory overhead. f. Sales representatives commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,000. g. Monthly general and administrative expenses include $22,000 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) i. 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 $70,000. 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 $20,000 are to be declared and paid in May 1. 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 $140,000 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