Question

ZIGBY 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 Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 51,000 483,600 94,100 443, 520 1,072,220 622,000 (161,000) 461,000 $1,533, 220 $ 211,400 23,000 234,400 515,000 749,400 346,000 437,820 783, 820 $1,533, 220 To prepare a master budget for April, May, and June of 2019, management gathers the following information.

Answer 1

5.

Factory Overhead Budget
	April	May	June	Total
Labor hours needed	9410	10260	11730	31400
Predetermined Overhead rate per hour	$                  4	$                  4	$                  4
Budgeted Variable Overhead	$       35,758	$       38,988	$       44,574	$       119,320
Budgeted Fixed Overhead	$       31,400	$       31,400	$       31,400	$         94,200
Budgeted Total Overhead	$       67,158	$       70,388	$       75,974	$       213,520

6.

Selling Expense Budget
	April	May	June	Total
Budgeted Sales	$     744,000	$     514,600	$     688,200	$   1,946,800
Commission Percent	5%	5%	5%
Sales Commission	$       37,200	$       25,730	$       34,410	$         97,340
Fixed Salary	$         4,100	$         4,100	$         4,100	$         12,300
Total	$       41,300	$       29,830	$       38,510	$       109,640

7.

General and administrative expense Budget
	April	May	June	Total
Administrative Salaries	$       25,000	$       25,000	$       25,000	$         75,000
Monthly Interest	$         4,120	$         4,120	$         4,120	$         12,360
Total	$       29,120	$       29,120	$       29,120	$         87,360

8.

Calculation of Cash Receipts from Customers
		April	May	June
Total Budgeted Sales		$     744,000	$     514,600	$       688,200
Cash Sales	35%	$     260,400	$     180,110	$       240,870
Sales on credit	65%	$     483,600	$     334,490	$       447,330
Total Cash Receipts from Customers
Current month Cash Sales		$     260,400	$     180,110	$       240,870
Collection of receivables		$     483,600	$     483,600	$       334,490
Total Cash Receipts		$     744,000	$     663,710	$       575,360
Cash Budget
	April	May	June
Beginning Cash Balance	$       51,000	$     209,532	$     290,844
Total Cash Receipts from Customers	$     744,000	$     663,710	$     575,360
Total Cash Available	$     795,000	$     873,242	$     866,204
Cash Payments for :
Raw Materials	$     211,400	$     196,700	$     219,900
Direct Labor	$     244,660	$     266,760	$     304,980
Factory Overhead	$       35,758	$       38,988	$       44,574
Selling Expense	$       41,300	$       29,830	$       38,510
General and administrative expense	$       29,120	$       29,120	$       29,120
Dividend Paid		$       21,000
Equipment Purchase			$     141,000
Total Cash Payments	$     562,238	$     582,398	$     778,084
Preliminary Ending Balance	$     232,762	$     290,844	$       88,120
Financing
Borrowing			$       10,880
Repayment	$     -23,000
Interest	$           -230
Ending Balance	$     209,532	$     290,844	$       99,000
Loan Balance
	April	May	June
Loan Balance - Beginning Balance	$       23,000	$                -	$                -
Additional Loan (Repayment)	$     -23,000		$       10,880
Loan Balance - End of Month	$                -	$                -	$       10,880

As per HOMEWORKLIB RULES, we are supposed to answer 4 sub parts, i have done 5,6,7 and 8, kindly post question for remaining parts.