PLEASE ANSWER ALL QUESTIONS FOR EACH SECTION FOR #7, 8,9,10; THE ANSWER FOR THOSE QUESTIONS ARE FROM SECTIONS 1,2,3,4,5,6. Answer them correctly and take your time and fill in each section where it needs an answer. Please help.

[The following information applies to the questions displayed below.]

The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015
Assets
Cash	$	99,000
Accounts receivable		500,250
Raw materials inventory		101,000
Finished goods inventory		402,500
Total current assets		1,102,750
Equipment, gross		618,000
Accumulated depreciation		(159,000)
Equipment, net		459,000
Total assets	$	1,561,750
Liabilities and Equity
Accounts payable		209,700
Short-term notes payable		21,000
Total current liabilities	$	230,700
Long-term note payable		505,000
Total liabilities		735,700
Common stock		344,000
Retained earnings		482,050
Total stockholders equity		826,050
Total liabilities and equity	$	1,561,750

To prepare a master budget for April, May, and June of 2015, management gathers the following information.

a.	Sales for March total 23,000 units. Forecasted sales in units are as follows: April, 23,000; May, 19,000; June, 18,800; July, 23,000. Sales of 249,000 units are forecasted for the entire year. The products selling price is $29.00 per unit and its total product cost is $25.00 per unit.
b.	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 5,050 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.
c.	Company policy calls for a given months ending finished goods inventory to equal 70% of the next months expected unit sales. The March 31 finished goods inventory is 16,100 units, which complies with the policy.
d.	Each finished unit requires 0.50 hours of direct labor at a rate of $24 per hour.
e.	Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.60 per direct labor hour. Depreciation of $24,320 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 managers monthly salary is $3,900.
g.	Monthly general and administrative expenses include $10,000 administrative salaries and 0.8% monthly interest on the long-term note payable.
h.	The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month following the sale (none is collected in the month of the sale).
i.	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.
J.	The minimum ending cash balance for all months is $110,000. 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 $19,000 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 $139,000 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

ZIGBY MANUFACTURING
Sales Budget
April, May, and June 2015
	Budgeted Unit Sales	Budgeted Unit Price	Budgeted Total Dollars
April 2015	23,000	$29.00	667,000
May 2015	19,000	29.00	551,000
June 2015	18,800	29.00	545,200
Totals for the quarter	60,800		1,763,200

2.

Production budget.

ZIGBY MANUFACTURING
Production Budget
April, May, and June 2015
	April	May	June	Total
Next month's budgeted sales (units)	19,000	18,800	23,000
Ratio of inventory to future sales	70%	70%	70%
Budgeted ending inventory (units)	13,300	13,160	16,100
Budgeted units sales for month	23,000	19,000	18,800
Required units of available production	36,300	32,160	34,900
Beginning inventory (units)	16,100	13,300	13,160
Units to be produced	20,200	18,860	21,740	60,800

3. Raw materials budget.

ZIGBY MANUFACTURING
Raw Materials Budget
April, May, and June 2015
	April	May	June	Total
Production budget (units)	20,200	18,860	21,740
Materials requirements per unit	0.50	0.50	0.50
Materials needed for production	10,100	9,430	10,870
Budgeted ending inventory	4,715	5,435	4,500
Total materials requirements (units)	14,815	14,865	15,370
Beginning inventory	5,050	4,715	5,435
Materials to be purchased	9,765	10,150	9,935	29,850
Material price per unit	$20	$20	$20	$20
Total cost of direct material purchases	$195,300	$203,000	$198,700	$597,000

4.

Direct labor budget.

ZIGBY MANUFACTURING
Direct Labor Budget
April, May, and June 2015
	April	May	June	Total
Budgeted production (units)	20,200	18,860	21,740
Labor requirements per unit (hours)	0.50	0.50	0.50
Total labor hours needed	10,100	9,430	10,870	30,400
Labor rate (per hour)	$24	$24	$24	$24
Labor dollars	$242,400	$226,320	$260,880	$729,600

5.

Factory overhead budget.

ZIGBY MANUFACTURING
Factory Overhead Budget
April, May, and June 2015
	April	May	June	Total
Labor hours needed	10,100	9,430	10,870
Variable factory overhead rate	3.60	3.60	3.60
Budgeted variable overhead	$36,360	$33,948	$39,132	$109,440
Budgeted fixed overhead	24,320	24,320	24,320	72,960
Budgeted total overhead	$60,680	$58,268	$63,452	$182,400

6.

Selling expense budget.

ZIGBY MANUFACTURING
Selling Expense Budget
April, May, and June 2015
	April	May	June
Budgeted sales
Sales commission percent	10%
Sales commissions
Sales salaries	3,900
Total selling expenses

7.

General and administrative expense budget.

ZIGBY MANUFACTURING
General and Administrative Expense Budgets
April, May, and June 2015
	April	May	June
Salaries
Interest on long-term note
Total expenses

8.

Cash budget. (Negative balance and Loan repayment amount should be indicated with minus sign. Round your answers to 2 decimal places.)

Calculation of Cash receipts from customers:
		April	May	June
Total budgeted sales
Cash sales	25%
Sales on credit	75%
Total cash receipts from customers
		April	May	June
Current month's cash sales
Collections of receivables

ZIGBY MANUFACTURING
Cash Budget
April, May, and June 2015
	April	May	June
Beginning cash balance
Cash receipts from customers
Total cash available
Cash disbursements:
Payments for raw materials
Payments for direct labor
Payments for variable overhead
Sales commissions
Sales salaries
General & administrative salaries
Taxes paid
Dividends
Loan interest
Purchases of equipment
Total cash disbursements	0	0	0
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

9. Budgeted income statement for the entire first quarter (not for each month separately).

ZIGBY MANUFACTURING
Budgeted Income Statement
For Three Months Ended June 30, 2015
Sales
Cost of goods sold
Gross profit
Operating expenses
Sales commissions
Sales salaries
General administrative salaries
Interest expense
Long-term note interest
Total operating expenses		0
Income before taxes		0
Income tax
Net income		$0

10. Budgeted balance sheet.

ZIGBY MANUFACTURING
Budgeted Balance Sheet
June 30, 2015
Assets
Cash
Accounts receivable
Raw materials inventory
Finished goods inventory
Total current assets		$0
Equipment
Accumulated depreciation
Equipment, net		0
Total assets
Liabilities and Equity
Liabilities
Accounts payable
Income taxes payable
Bank loan payable
Total current liabilities
Long-term note payable
Stockholders' Equity
Common stock
Retained earnings
Total Stockholders' Equity
Total Liabilities and Equity

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