The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 201 ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory $ 56.000 341,250 84200 Total current assets Equipment, gross Accumulated depreciation 899130 632.000 166,000) Equipment, net 466,000 Total assets $ 1285.130 Liabilities and Equity Accounts payable Short-term notes payable 189 800 28.000 $ Total current liabilities Long-term note payable 212.800 595.000 733.800 Total abilities Common stock Retained eamings 200 330 Total stockholders' equity 551230 Total abilities and equity $ 1.285.130 To prepare a master budget for April, May, and Jone of 2015, management gathers the following information a Sales for March total 21000 units Forecasted sales in units are as follows: April, 21000: May. 15.800 June, 21500: July 21000 Sales of 256.000 units are forecasted for the entire year. The products selling price is $25.00 per unit and its total product costs $20.00 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month materials requirements. The March 31 raw materials inventory s4210 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5.500 units Raw materials cost $20 pe 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 nex month's expected unit sales. The March 31 finished goods inventory is 16.800 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct laborat a rate of $12 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rates $4.30 per direct laborhout Depreciation of $37950 per month is treated as feed factory overhead Sales representatives commissions are 7% of sales and are paid in the month of the sales. The sale manager's monthly salary is $4,600. Q. Monthly general and administrative expenses include $28.000 administrative salaries and 0.5% month Interest on the long-term not payable n. The company expects 35% of sales to be for cash and the remaining 65% on Credit Receivables an collected in in the month following the sale none is collected in the month of the sale L A raw materials purchases are on credit, and no payables arise from any other transactions. One month raw materials purchases are fully paid in the next month J. The minimum ending cash balance for all months is $56.000 necessary, the company bomow enough cash using a short-term not to reach the minimum. Short-term notes require an interest payment of 1% each month-end before any repayment the ending cash balance exceeds the minimum, the excess wil be applied to repaying the short-term notes payable balance K. Dividends of $26.000 are to be declared and paid in May L No cash payments for income tax re to be made during the second calendar Quarter Income tax wil be assessed at 40% in the quarter and paid in the third calendar Quartet m. Equipment purchases of $45.000 are budgeted for the last day of June. Required Prepare the following budgets and other financial Information as required. All budgets and other financia Information should be prepared for the second calendar Quartet except as otherwise noted below. Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be founder down to the newest whole dollar Factory Dudu April, Meyer Singer budget ZIBY MANUFACTURING Cash Budget April, May and June 2015 Cashers Total cash disbursements Premiere desh balance