ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 Assets 65,0ee 437, 760 90, 200 308,028 900,988 630,000 $ Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciation Equipment, net Total assets (165,000) 465,000 $1,365,988 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $204,500 27,000 231,500 515,000 746, 500 350,000 269 488 619,488 $1, 365,988 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 b Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's materials requirements. c Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. 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 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 The March 31 finished goods inventory is 15,960 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct4abor 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 g. Monthly general and administrative expenses include $27,000 administrative salaries and 0.6% monthly interest on the long-term note payable following the sale (none are collected in the month of the sale) are fully paid in the next month h. The company expects 20% of sales to be for cash and the r emaining 80% on credit Receivables are collected in full in the month are on credit, and no payables arise from any other transactions. One month's raw materials purchases 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 re ending cash balance exceeds the minimum,the excess will be applied to repaying the short-term notes payable balance. m notes requre an interest payment of 1% at each month end (before any repayment if the k. Dividends of $25,000 are to be declared and pald in May ts 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 budaeted for the last dav of June. Prepare the following budgets and other financial information as required. All budgets and other financial 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 riearest whole dollar )y 1. Sales budget. 2. Production budget 3. Raw materials budget 4. Direct labor budget s5. 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 Complete this question by entering your answers in the tabs below. red 9 ZIGBY MANUFACTURING Cash Budget April, May, and June 2017 April May June Beginning cash balance 65,000 547,200 612,200 Cash receipts from customers 514,560 417,600 Total cash available Cash payments for Raw materials Direct labor