The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Estimated Balance Sheet panr March 31, 2017 Assets Cash 54,000 354,375 Accounts receivable Raw materials inventory Finished goods inventory 100,495 333,000 Total current assets 841,870 628,000 Equipment, gross Accumulated (164,000) depreciation Equipment, net 464,000 $1,305,870 Total assets Liabilities and Equity Accounts payable 212,195 Short-term notes 26,000 payable Total current 238,195 liabilities Long-term note payable 514,000 752,195 349,000 204,675 Total liabilities Common stock Retained earnings Total stockholders' 553,675 equity Total liabilities and s1.305,870 equity To prepare a master budget for April, May, and June of 2017, management gathers the following information: To prepare a master budget for April, May, and June of 2017, management gathers the following information: a. Sales for March total 22,500 units. Forecasted sales in units are as follows: April, 22,500; May, 19,500; June, 21,700; and July, 22,500. Sales of 254,000 units are forecasted for the entire year. The product's selling price is $22.50 per unit and its total product cost is $18.50 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 5,025 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,400 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 18,000 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $10 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.10 per direct labor hour. Depreciation of $30,790 per month is treated as fixed factory overhead. oprorer f. Sales representatives' commissions are 6% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,400. g. Monthly general and administrative expenses include $26,000 administrative salaries and 0.5% 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 $54,000. 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 $24,000 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 $144,000 are budgeted for the last day of June. 8. Cash budget. 9. Budgeted income statement for the entire second quarter (not for each month separately). 10. Budgeted balance sheet. Complete this question by entering your answers in the tabs below. Requi... Requi.. Requi... Requi.. Requi.. Requi... Requi... Requi... Requi... Requi... 6 10 2 3 4 7 Budgeted balance sheet. (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2017 Assets $ Total current assets Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity Required 9 Required 10> ernead budget. 6. Selling expense budget. 7. General and administrative expense budget. 8. Cash budget 9. Budgeted income statement for the enti re second quarter (not for each month separately). 10. Budgeted balance sheet Complete this question by entering your answers in the tabs below. Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requ... Requ... 6 1 4 5 7 10 Budgeted income statement for the entire second quarter (not for each month separately). (Round your final answers to the nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2017 Operating expenses Total operating expenses 0 Required 8 Required 10 > J54,315 JUr,125| 341,f {5] Total cash receipts from customers April May June Current month's cash sales Collections of receivables ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April May June Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary 0 ash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance End of month Required 9> Required 7 Complete this question by entering your answers in the tabs below. Requi... Requi... Requi... Requi... Requi... Requi...Requi... Requi... Requi... Requi... 10 1 2 3 4 5 6 8 9 General and administrative expense budget. ZIGBY MANUFACTURING General and Administrative Expense Budgets April, May, and June 2017 April May June Salaries Interest on long-term note Total budgeted G&A 2,570 7,710 2,570 2,570 2,570 2,570 $ 2,570 7,710 expenses Required 8> Required 6 Complete this question by entering your answers in the tabs below. Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... Requi... 1 |10 2 3 4 5 6 7 Selling expense budget. ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2017 April May June Total $ Budgeted sales 438,750488, 250 506,250 Sales commission percent Sales commissions 6% 6% 6% 30,375 26,325$ 29,295| $ 85,995 4,400 Sales salaries Total budgeted selling expenses 4,400 4,400 13,200 $34,775 $ 30,725 $33,695 $ 99,195 Required 5 Required 7