ZIGBY MANUFACTURING Estimated Bolance Sheet March 31, 2015 Assets Cosh Accounts receivoble Raw materials inventory Finished goods inventory S 80,000 487,500 93,390 438.000 Total current assets Equipment, gross Accumulated depreciation 1,098,890 640,000 170,000) Equipment, net 470,000 Total assets $ 1,568,890 Liabilities and Equity Accounts payable Short-term notes payable 215,690 32.000 Total current liabilities ng-term note payable 5 247690 520,000 767,690 355,000 446.200 Total liabilities Common stock Retained eornings Total stockholders equity 801.200 Total liabilities andl equity $ 1,568,890 To prepare a moster budget for April, May, and June of 2015, management gothers the following informotion. a. Sales for March total 25,000 units. Forecasted sales in units ore as follows: April, 25,000; May. 17100; June, 22,300; July, 25,000. Sales of 260,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.90 per unit. b. Company policy calls for a given month's ending raw materials inventory to equal 50% of the next month's moterials requirements. The March 31 row moterials inventory is 4,670 units, which complies with the policy. The expected June 30 ending raw materials inventory is 6,000 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of row materials C. Company policy calls for given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 20,000 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.00 f. Sales representatives, commissions re 10% of sales and are paid in the month of the sales. The sales g. Monthly general and administrative expenses include $21,000 administrative salaries and 0.9% monthly h. The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables ore i. All raw materials purchases are on credit, and no payables arise from any other transoctions. One month's per direct lobor hour. Depreciation of $40,790 per month is treated as fixed factory overheod. manager's monthly salary is $5,000 interest on the long-term note payable collected in full in the month following the sale (none is collected in the month of the sale). row materials purchases are fully paid in the next month. J. The minimum ending cash belence for all months is $99,000. If necessory. the compony borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at eoch month-end (before any repayment). If the ending cash bolance exceecs the minimum, the excess will be applied to repoying the short-term notes payable balance K. Dividendls of $30,000 are to be declared and paid in May I. No cosh poyments for income taxes are to be made during the second calender querter. Income tox will be assessed at 40% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $150,000 are budgeted for the last day of June Required: Prepare the following budgets and other financial information as required. All budgets ond other financial information should be prepared for the second calender quarter, except as otherwise noted below. Round colculations up to the nearest whole dollar, except for the amount of cosh sales, which should be rounded down to the nearest whole dollar