This is the one that I am having trouble with.

Here is the other financial statements that go with this problem. As you can see, everything is correct.

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGDY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished 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 Connon stock Retained earnings Total stockholders' equity Total liabilities and equity $ 65.688 437,760 90,200 388.628 900,988 638,888 (165,000 465,000 $ 1.365,988 $ 204,500 27,000 231,500 515,000 746,500 35e,eee 269,488 619.498 $ 1.365,988 To prepare a master budget for April, May, and June of 2019, management gathers the following Information. a. Sales for March total 22,800 units. Forecasted sales In units are as follows: April, 22.800: May, 16,000: June, 23,000, and July, 22.800. Sales of 255.000 units are forecasted for the entire year. The product's selling price is $24.00 per unit and its total product cost is $19.30 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 4,510 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 5,500 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 70% of the next month's expected unit sales. The March 31 finished goods Inventory is 15.960 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $11 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.20 per direct labor hour. Depreciation of $35.020 per month is treated as fixed factory overhead. f. Sales representatives commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary Is $4.500. g. Monthly general and administrative expenses Include $27.000 administrative salaries and 0.6% monthly Interest on the long-term note payable. h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale) L 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 $55.000. 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 $25.000 are to be declared and paid in May. L. 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 $145.000 are budgeted for the last day of June. ZIGBY MANUFACTURING Budgeted Balance Sheet June 30, 2019 Assets Cash $ 55,000 441,800 218,800 x 308,028 $1,023,428 s 775,000 (270,060) 504,940 $1,528,368 Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Bank loan payable Income taxes payable Total current liabilities Long-term note payable Stockholders' Equity Common stock $ 224,300 48,157 15.240 287 897 515,000 $ 350,000 287,062 Retained earnings Total Stockholders Equity Total Liabilities and Equity 817 082 $1.419.759 ZIGBY MANUFACTURING Sales Budget April, May, and June 2019 Budgeted Budgeted Unit Sales Unit Price $ April 2019 May 2019 June 2019 Totals for the second quarter 22,800 16,000 23,000 24.00 24.00 24.00 Budgeted Sales Dollars $ 547,200 384,000 552,000 $ 1,483,200 61.800 Total Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted units sales for month Required units of available production Beginning inventory (units) Units to be produced ZIGBY MANUFACTURING Production Budget April, May, and June 2019 April May 16,000 23,000 70% 70% 11,200 16,100 22,800 16,000 34,000 32,100 15,960 11,200 18,040 20,900 June 22,800 70% 15,960 23,000 38,960 16,100 22,860 61,800 ZIGBY MANUFACTURING Total Budgeted production (units) Labor requirements per unit (hours) Total labor hours needed Direct labor rate (per hour) Budgeted direct labor cost Direct Labor Budget April, May, and June 2019 April May 18,040 20,900 0.50 0.50 9,020 10,450 S 11 S 11 $ 99,220 $ 114,950 June 22,860 0.50 11,430 11 125,730 S $ 30,900 S 11 S 339,900 Total ZIGBY MANUFACTURING Factory Overhead Budget April, May, and June 2019 April May 9,020 10,450 $ 4.20 $ 4.20 $ 37,884 S 43,890 35,020 35,020 $ 72,904 $ 78,910 $ $ June 11,430 4.20 48,006 35,020 83,026 Variable factory overhead rate Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead $ 129,780 105,060 234,840 $ S Total ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2019 April May $ 547,200 $ 384,000 10% 10% S 54,720 S 38,400 4,500 4,500 S 59,220 $ 42,900 Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted seling expenses $ June 552,000 10% 55,200 4,500 59,700 $ $ 148,320 13,500 161,820 $ $ ZIGBY MANUFACTURING General and Administrative Expense Budget April, May, and June 2019 April May Salaries $ 27,000 $ 27,000 S Interest on long-term note 3,090 3,090 Total budgeted G&A expenses S 30,090 S 30,090 $ June 27,000 3,090 30,090 Total 81,000 9,270 90,270 $ Calculation of Cash receipts from oustomer Total de Cash is Sales and 20 30% 472000 0 37.750 07203 000 000 441600 Totalcach receipts from oustomers so l s 76.00 Cumartesash Collections of 110.000 2002 37.760 ZOEY MANUFACTURING Cach Budget April May and June 2012 April 66,000 547,200 612.2006 May 154,0160 $14,00 ,576 June 2 170410 417.00 Beginning cash balance Cash receipts from customers Total cash available Cash payments for 14,640 194,700 21.00 Director 4.ro Loan interest Variable overhead Langarm 000000000 204,500 99,220 4.500 2700 37,2340 2,000 54.7200 43. 2,090 OOOOOOOOO Purchases equipment aminte G 27.000 27,000 25.000 Divin e Totalcar Poliminary cash balance Additional loan nomor Ending cash bone ALSO 101 21700 7000 15401s 217 0 7200 47 55.000 s June Loan be April s 27. 00 700 Loan balance. Beginning of month Additional loan anymort) Leon balance. End of month May 0 0 47. ZIGBY MANUFACTURING Budgeted Income Statement For Three Months Ended June 30, 2019 Sales 1.483.200 1,102,740 290,460 Cost of goods sold Gross profit Operating expenses Sales commissions Sales salaries General administrative salaries Long-term note interest Bank loan interest expense 148,320 13,500 81,000 9,270 270 252.360 Total operating expenses Income before taxes Income tax Net income 000 38,100 15.240 22.860