The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019.

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019
Assets
Cash	$	30,000
Accounts receivable		464,100
Raw materials inventory		98,505
Finished goods inventory		450,840
Total current assets		1,043,445
Equipment		620,000
Accumulated depreciation		(160,000	)
Equipment, net		460,000
Total assets	$	1,503,445
Liabilities and Equity
Accounts payable	$	206,405
Short-term notes payable		22,000
Total current liabilities		228,405
Long-term note payable		510,000
Total liabilities		738,405
Common stock		345,000
Retained earnings		420,040
Total stockholders equity		765,040
Total liabilities and equity	$	1,503,445

To prepare a master budget for April, May, and June of 2019, management gathers the following information.

1. 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 products selling price is $30.00 per unit and its total product cost is $25.50 per unit.
2. Company policy calls for a given months ending raw materials inventory to equal 50% of the next months 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.
3. Company policy calls for a given months ending finished goods inventory to equal 80% of the next months expected unit sales. The March 31 finished goods inventory is 17,680 units, which complies with the policy.
4. Each finished unit requires 0.50 hours of direct labor at a rate of $25 per hour.
5. 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.
6. Sales representatives commissions are 6% of sales and are paid in the month of the sales. The sales managers monthly salary is $4,000.
7. Monthly general and administrative expenses include $22,000 administrative salaries and 0.9% monthly interest on the long-term note payable.
8. 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).
9. All raw materials purchases are on credit, and no payables arise from any other transactions. One months raw materials purchases are fully paid in the next month.
10. 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.
11. Dividends of $20,000 are to be declared and paid in May.
12. 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.
13. 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.): 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.

ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Total current assets $ 0 0 Equipment, net Total assets Liabilities and Equity Liabilities Total current liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity Calculation of Cash receipts from customers: April May June Total budgeted sales Cash sales Sales on credit 30% 7096 Total cash receipts from customers April May June Current month's cash sales Collections of receivables Total cash receipts ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April May June Beginning cash balance Cash receipts from customers Total cash available Cash payments for Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & administrative salaries Dividends Loan interest Long-term note interest Purchases of equipment 0 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance April May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Budgeted income statement for the entire second quarter (not for each month nearest whole dollar.) ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Sales commissions Sales salaries General administrative salaries Long-term note interest Retained earnings Common stock Total operating expenses Income before taxes Income tax Net income 0 0