Question

just need help with: the cash budget(8) budgeted income statement for the entire second quarter (9) and (10) budgeted balanve sheet

Problem 07-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019 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 Totol stockholders' equity Total liabilities and equity 40,000 342, 248 98,500 325,540 886,288 600,000 (150, eee) 450,000 $ 1,256,288 $ 200, 500 12,000 212.500 500,000 712.500 335.000 208,788 543,788 $ 1,256,288

Answer 1

Calculation April May June Zigby Manufacturing Sales Budget Req 1 Sales (Units) Selling price per unit Total budgeted sales April 20,500 23.85 488,925 May 19,500 23.85 465,075 June 20,000 23.85 477,000 Quarter 60,000 23.85 1,431,000 Sales (units)* Selling price per unit June Schedule of cash receipts Req 1A Cash sales Credit sales Total cash collections April May 146,678 139,523 342,248 342,248 488,926 481,770 June Quarter April May 143,100 429,300 Budgeted sales * 30% 325,553 1,010,048 Next Months Budgeted sales * 70% 468,653 1,439,348 Quarter April May June Production budget Req 2 Budgeted Next Months Sales (Units) Ratio of inventory to future sales Budgeted Ending Inventory (Units) Budgeted Sales (Units) Inventory Needed Less Beginning Inventory Required Production (Units) April 19,500 80% 15,600 20,500 36,100 16,400 19,700 May June 20,000 20,500 80% 80% 16,000 16.000 16,400 19,500 20,000 35,500 36,400 15,600 16,000 19,900 20,400 16,400 Budgeted Next Months Sales (Units) * 80% 60,000 76,400 16,400 End Inv of Apr End Inv of May 60,000 Raw Materials budget Req3 Required Production (Units) Materials required per unit Raw Material Required Add Ending Inventory Raw Materials Needed Less Beginning Inventory Raw Material Purchased Raw Material Cost per unit Budgeted Raw Material Cost April 19,700 0.50 9,850 4,975 14,825 4,925 9,900 May 19,900 0.50 9,950 5,100 15,050 4,975 10,075 June 20,400 0.50 10,200 4,000 14,200 5,100 9,100 20 182,000 Quarter April May June 60,000 0.50 30,000 Required Production (Units) * 0.50 4,000 Next Months Raw Material Required * 50% 34,000 4,925 End Inv of Apr End Inv of May 29,075 20 581,500 Raw Material Purchased * Raw Material Cost per unit 20 20 198,000 201,500 April May June Direct labor budget Req4 Required Production (Units) Labor requirements per unit Total Labor hours needed Direct labor rate per hour Budgeted Direct Labor Cost April 19,700 0.50 9,850 15 147,750 May 19,900 0.50 9,950 15 149,250 June 20,400 0.50 10,200 Quarter 60,000 0.50 30,000 Required Production (Units) * 0.50 15 15 153,000 450,000 Total Labor hours needed * Direct labor rate per hour

Factory Overhead budget Req5 Labor hours needed Variable factory overhead rate Budgeted Variable factory overhead Budgeted Fixed factory overhead Budgeted total factory overhead April 9,850 2.70 26,595 20,000 46,595 May 9,950 2.70 26,865 20,000 46,865 June 10,200 2.70 27,540 20,000 47,540 Quarter April May June 30,000 2.70 81,000 Labor hours needed * Variable factory overhead rate 60,000 141,000 May June Selling Expenses Budget Req6 Budgeted sales Sales commission percent Sales commission Sales salaries Total budgeted selling expenses April 488,925 8% 39,114 3,000 42,114 May 465,075 8% 37,206 3,000 40,206 June 477,000 8% 38,160 3,000 41,160 Quarter April 1,431,000 8% 114,480 Budgeted sales *8% 9,000 123,480 April May June General & Admin Expenses Budget Req7 Salaries Interest on long term note Total budgeted General & Admin expenses April 12,000 4,500 16,500 May 12,000 4,500 16,500 June 12,000 4,500 16,500 Quarter 36,000 13,500 49,500 =500,000*0.9% April May June April 40,000 488,926 528,926 May 83,347 481,770 565,117 June 124,296 468,653 592,948 Quarter 40,000 1,439,348 1,479,348 Cash budget Req8 Cash balance, beginning Cash receipts from customers Total cash available Less Cash payments for Raw materials Direct labor Variable overhead Sales commissions Sales salaries General & admin salaries Dividends Loan interest Long term note interest Purchase of equipment Taxes paid Total cash payments Preliminary cash balance Additional loan (loan repayments) Ending Cash balance 200,500 147,750 26,595 39,114 3,000 12,000 198,000 149,250 26,865 37,206 3,000 12,000 10,000 201,500 153,000 27,540 38,160 3,000 12,000 600,000 450,000 81,000 114,480 9,000 36,000 10,000 120 13,500 130,000 =12,000*1% 120 4,500 4,500 4,500 130,000 440,821 124,296 433,579 95,347 (12,000) 83,347 569,700 23,248 16,752 40,000 1,444,100 35,248 4,752 40,000 =40,000-23,248 124,296

1,431,000 1,191,000 240,000 Calculation =60,000*23.85 =60,000*19.85 Income Statement Req9 Sales Cost of goods sold Gross Profit Operating expenses Sales Commissions Sales Salaries General Administrative Salaries Interest on short term note payable Interest on long term note payable Total Operating expenses Income before taxes Income tax expense Net Income 114,480 9,000 36,000 120 13,500 =12,000*1% =500,000*0.9%*3 173, 100 66,900 23,415 43,485 =66,900*35% 40,000 333,900 80,000 325,540 -477,000*70% --4,000*20 =16,400*19.85 779,440 730,000 (210,000) =600,000+130,000 =150,000+20,000*3 520,000 1,299,440 Balance Sheet Req 10 Assets Cash Accounts Receivable Raw Material Inventory Finished goods Inventory Total Current Assets Equipment, gross Accumulated Depreciation Equipment, net Total Assets Liabilities & Stockholders Equity Current Liabilties Accounts Payable Income taxes Payable Short term notes payable Total Current Liabilties Long term notes payable Total Liabilties Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 182,000 23,415 16,752 222,167 500,000 From Income Statement From cash budget 722,167 335,000 242,273 =208,788+43,485-10,000 577,273 1,299,440