The management of Ziggy Manufacturing prepared the following estimated balance sheet for March 2024: Assets Liabilities and Equity Cash $49,781 Accounts Payable 205,000 Accounts Receivable 342,104 Short-term Notes Payable 15,800 Raw Materials Inventory 98,500 Total Current Liabilities 220,800 Finished Goods Inventory 337,594 Long-term Notes Payable 582,400 Total Current Assets 827,979 Total Liabilities 803,200 Equipment 527,600 Common Stock 386,300 Accumulated depreciation (131,900) Retained Earnings 34,179 Equipment, net 395,700 Total Stockholders' equity 420,479 Total assets $1,223,679 Total liabilities and equity $1,223,679 You are asked to prepare a master budget for the next quarter ended June 30, 2024. Management has provided the following information: Sales information:(in units) March actual sales 20,500 Forecasted sales: April 20,500 May 19,500 June 20,000 July 20,500 Annual Production Estimate (in units) 240,000 Selling price per unit $22.39 Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's material requirements. The March 31 raw materials inventory complies with the policy. It is 50% of the April materials needed for production. The expected June 30 ending raw materials inventory is 4,000 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. Company policy calls for a given months' ending finished goods inventory to equal 80% of of the next month's expected unit sales. The March 31 finished goods inventory complies with this policy. It is 80% of the April forecast sales. Each finished unit requires 0.50 hours of direct labor at a rate of: $18.00 per hour Overhead is allocated based on direct labor hours. Applicable information is as follows: Predetermined Overhead Rate $3.20 per Direct Labor hour Fixed Factory Overhead (all is Depreciation) $20,900 per month Sales commissions and salaries are as follows: Sales representatives commissions are 6% of sales and are paid in the month of sales. Sales manager's monthly salary is $3,400 Monthly general and admin expenses include 13,400 administrative salaries and 0.9% monthly interest on the long-term note payable. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). The breakdown of sales is as follows: Cash sales 30% Credit sales 70% All raw material 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. The minimum ending cash balance for all months is $40,000. 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. This portion of the assignment is EXTRA CREDIT, see Rubric. Dividends of $10,000 are to be declared and paid in May. No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 21% in the quarter and paid in the third calendar quarter. Equipment purchases of $130,000 are budgeted for the last day of June.