The following Information applies to the questions displayed below. The manageme

Question

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 Accounts receivable Raw materials inventory Finished goods inventory $ 46,000 386,925 96.290 327,831 Total current assets Equipment, gross Accumulated depreciation 857,046 612,000 (156,000) Equipment, net 456,000 Total assets $ 1.313,046 Liablities and Equity Accounts payable Short-tem notes payable 96,190 18,000 Total current liabilities Long-term note payable $214,190 506,000 Total liabilities Common stock Retained earnings 720,190 341,000 251,856 Total stockholders' equity 592,856 Total liabilities and equity $1,313,046

Explanation / Answer

Sales Budget April May June Total Sales in Units                20,100                18,900                 19,700                58,700 Sp Per Unit                  27.50                   27.50                   27.50                   27.50 Total Sales in $              552,750              519,750              541,750          1,614,250 Cash Sales - 30%              165,825              155,925              162,525              484,275 Credit Sales - 70%              386,925              363,825              379,225          1,129,975 Schedule of Expected Cash Collections from Sales April May June Total Cash Sales - 30%              165,825              155,925              162,525              484,275 Collection from Accounts Receivables Accounts Receivable - Mar 31, 2015              386,925              386,925 April Sales              386,925              386,925 May Sales              363,825              363,825 June Sales Sales                          -                            -   Total cash Collections              552,750              542,850              526,350          1,621,950 Merchandise Production Budget April May June Total Sales In units                20,100                18,900                 19,700                58,700 Add: Closing Inventory in units                13,230                13,790                 14,070                14,070 Total Needs                33,330                32,690                 33,770                99,790 Less: Beginning Inventory in uints              (14,070)              (13,230)              (13,790)              (14,070) Required Units Produced                19,260                19,460                 19,980                58,700 Direct Material Budget April May June Total Required Units Produced                19,260                19,460                 19,980                58,700 Raw Material required per Unit                     0.50                     0.50                     0.50                     0.50 Total Raw Material Required                  9,630                   9,730                   9,990                29,350 Add: Ending Inventory                  4,865                   4,995                   4,600                   4,600 Total Needs                14,495                14,725                 14,590                33,950 Less: Beginning Inventory                (4,815)                (4,865)                 (4,995)                (4,815) Total Raw Material Purchased                  9,680                   9,860                   9,595                29,135 Cost per Unit - Raw Material                        20                         20                         20                         20 Cost of Raw Material Purchased              193,600              197,200              191,900              582,700 Schedule of Cash payments to Suppliers April May June Total Cash Payment Accounts Payable - March 31, 2015              196,190              196,190 April Purchases              193,600              193,600 May Purchases              197,200              197,200 Total Cash Payment to Suppliers              196,190              193,600              197,200              586,990 Direct Labor Budget April May June Total Required Units Produced                19,260                19,460                 19,980                58,700 Direct Labor Hour per Unit                     0.50                     0.50                     0.50                     0.50 Total Direct Labor Hours Required                  9,630                   9,730                   9,990                29,350 Cost per Direct Labor Hour                        21                         21                         21                         21 Direct Labor Cost              202,230              204,330              209,790              616,350 Manufacturing Overhead Budget April May June Total Variable Overhead - $3 per DLH                28,890                29,190                 29,970                88,050 Fixed Overhead - Depreciation                25,440                25,440                 25,440          1,849,050 Selling & Admn. Budget April May June Total Sales Comm. - 6%                33,165                31,185                 32,505                96,855 Sales Manager Salary                  3,600                   3,600                   3,600                10,800 Administrative Salaries                18,000                18,000                 18,000                54,000 Total                54,765                52,785                 54,105              161,655 Cash budget April May June Total Opening cash Balance                46,000                95,965              140,380                46,000 Add: receipts Collection from Customers              552,750              542,850              526,350          1,621,950 Total Cash available              598,750              638,815              666,730          1,667,950 Less: Disbursements Cash Disbursement - Accounts Payable              196,190              193,600              197,200              586,990 Payment of Direct Labor              202,230              204,330              209,790              616,350 Payment of Variable Overhead                28,890                29,190                 29,970                88,050 Selling & Admn. Exp.                54,765                52,785                 54,105              161,655 Purchase of Equipment                         -                            -                136,000              136,000 Dividend Paid                         -                  16,000                          -                  16,000 Interest on Long Term Notes                  2,530                   2,530                   2,530                   7,590 Total Disbursement              484,605              498,435              629,595          1,612,635 Cash Balance Closing              114,145              140,380                 37,135                55,315 Add: Finance from Bank                         -                            -                     9,000                   9,000 Less: Payment to Bank              (18,000)                          -                            -                (18,000) Less: Payment of interet - Bank loan                    (180)                          -                            -                            -   Net Cash Balance Closing                95,965              140,380                 46,135                46,315

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