1

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING...

Question

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING...

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash $ 65,000 Accounts receivable 437,760 Raw materials inventory 90,200 Finished goods inventory 308,028 Total current assets 900,988 Equipment 630,000 Accumulated depreciation (165,000 ) Equipment, net 465,000 Total assets $ 1,365,988 Liabilities and Equity Accounts payable $ 204,500 Short-term notes payable 27,000 Total current liabilities 231,500 Long-term note payable 515,000 Total liabilities 746,500 Common stock 350,000 Retained earnings 269,488 Total stockholders’ equity 619,488 Total liabilities and equity $ 1,365,988 To prepare a master budget for April, May, and June of 2019, management gathers the following information. 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, 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. Company policy calls for a given month’s ending raw materials inventory to equal 50% of the next month’s materials requirements. 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. Company policy calls for a given month’s ending finished goods inventory to equal 70% of the next month’s expected unit sales. The March 31 finished goods inventory is 15,960 units, which complies with the policy. Each finished unit requires 0.50 hours of direct labor at a rate of $11 per hour. 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. Sales representatives’ commissions are 10% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $4,500. Monthly general and administrative expenses include $27,000 administrative salaries and 0.6% monthly interest on the long-term note payable. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). All raw materials purchases are on credit, and no payables arise from any other transactions. One month’s raw materials purchases are fully paid in the next month. The 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 repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. Dividends of $25,000 are to be declared and paid in May. 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. Equipment purchases of $145,000 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.):

. 8. Cash budget.

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

10. Budgeted balance sheet. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.

Answers

Answer with working is given below

Sales Budget Sales Units Total Budgeted Sales Cash Sales Sales on Credit April 22,800 $547,200 $109,440 $437,760 May 16,000 $

$1,483,200 $618,000 $339,900 $234,840 $290,460 ZIGBY MANUFACTURING Budgeted Income Statement For the three month Ended June 3


Similar Solved Questions

1 answers
CASH BUDGETING Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of...
CASH BUDGETING Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017: May 2016 $186,000 June 186,000 July 372,000 August 540,000 September 720,...
1 answers
What is the equation in point-slope form of the line passing through (2, 5) and (–1, 8)?
What is the equation in point-slope form of the line passing through (2, 5) and (–1, 8)?...
1 answers
Suppose a 25.4 mL sample of helium gas at 25.°C and 1.19 atm is heated to...
Suppose a 25.4 mL sample of helium gas at 25.°C and 1.19 atm is heated to 50°C and compressed to a volume of 16.1 ml. What will be the pressure of the sample? atm...
1 answers
23.9 Draw the product of the Michael addition (a) NO, (b) NO2 NO2 CN CN CN...
23.9 Draw the product of the Michael addition (a) NO, (b) NO2 NO2 CN CN CN سله الله .. دولت بهار (d) "NO: (e) NO2 CN CN e d." 23.9 Draw the product of the Michael addition. NaOET EN NO2 connect the a-ca...
1 answers
John Smith is a 65-year-old retiree who is admitted to your unit from the emergency department...
John Smith is a 65-year-old retiree who is admitted to your unit from the emergency department (Ed). On arrival, you note that he is trembling and nearly doubled over with severe abdominal pain. John indicates that he has severe pain in the right upper quadrant (RUQ) of his abdomen that radiates thr...
1 answers
For the data below, compute the Pearson correlation. 4 6. Find coefficient of determination: 5. 2....
For the data below, compute the Pearson correlation. 4 6. Find coefficient of determination: 5. 2. 3. 2....
1 answers
How do you distinguish the different types of blood vessels? Compare artery, vein, and capillary. Think...
How do you distinguish the different types of blood vessels? Compare artery, vein, and capillary. Think about what makes them similar and different. Examining the following blood smear photo, name the cells that are present....
1 answers
How to measure frequency, lower cutoff and upper cutoff on this circuit? 0R 8 ot
How to measure frequency, lower cutoff and upper cutoff on this circuit? 0R 8 ot...
1 answers
Apply procedure codes according to current guidelines and identify root operations and such look at photo...
Apply procedure codes according to current guidelines and identify root operations and such look at photo Date Sunday, February 10, 2019 11:59 PNM 25 Apply procedure codes according to current guidelines Identify root operations, approaches, body parts, devices, and qualifiers for given procedure...
1 answers
How do you simplify #(x^9z^(-3))/(x^6z^2)#?
How do you simplify #(x^9z^(-3))/(x^6z^2)#?...
1 answers
300 mm 300 mm Determine the internal forces at Point J when a=0. lec 480 mm...
300 mm 300 mm Determine the internal forces at Point J when a=0. lec 480 mm 240 mm С D 780 N...
1 answers
Given #f(x)# is a polynomial function of #x#, satisfying #f(x)*f(y)= f(x) +f(y)+f(x y)-2# and that #f(2)=5#. Then #f(3)# is equal to? A) 10 B) 24 C) 15 D) none
Given #f(x)# is a polynomial function of #x#, satisfying #f(x)*f(y)= f(x) +f(y)+f(x y)-2# and that #f(2)=5#. Then #f(3)# is equal to? A) 10 B) 24 C) 15 D) none...
1 answers
Part 2 After reaching the top of the incline, the box of mass 1 kg is...
Part 2 After reaching the top of the incline, the box of mass 1 kg is released, and allowed to slide back down the hill of incline angle 0 20 At the halfway point, the surface of the incline becomes rough, and friction becomes important The coefficients of friction between the box and hill are μ-...
1 answers
1. (2.5 points) Total manufacturing indirect maintenance costs are $100, and total indirect set-up costs are...
1. (2.5 points) Total manufacturing indirect maintenance costs are $100, and total indirect set-up costs are $200. You produced and sold 10 units of product A and 6 units of product B. Product A uses 2 direct labor dollars per unit and 5 machine hours per unit, and product B uses 5 direct labor doll...
1 answers
1) In a Windows clustering in a virtual environment, what are the 3 types of cluster configuratio...
1) In a Windows clustering in a virtual environment, what are the 3 types of cluster configurations? 2) Why would you use clustering?   3) Define "role" ,"priviledge"and "permission" in the ESXI/vCenter Server security model.   4) Name and Describe the 3 v...
1 answers
Consider the reaction 2H2 + O, — 21,0 AH x = -484 kJ Which answer best...
Consider the reaction 2H2 + O, — 21,0 AH x = -484 kJ Which answer best describes the transfer of heat that occurs when 1.30 mol H, reacts? 0484 kJ absorbed O 315 kJ released O 629 kJ absorbed 629 kJ released O 315 kJ absorbed 484 kJ released...
1 answers
Solve Sec^2x - 1 = 1/cot(x)? Interval of x is [0, 360)
#sec^2#x - 1 = 1 / cot(x)...
1 answers
28. A 55 year old male was exposed to aerosol from an air conditioner, ate a...
28. A 55 year old male was exposed to aerosol from an air conditioner, ate a casserole containing meat that was held at 110 degrees F for 4 hours, suffered from gum disease and is diabetic.Two weeks earlier he returned from a trip to Pakistan. The patient was admitted to the intensive care unit. His...

-- 0.060654--