ZIGBY MANUFACTURI Estimated Balance Sheet March 31 2017 Asse

ZIGBY MANUFACTURI Estimated Balance Sheet March 31, 2017 Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, grosS Accumulated depreciation Equipment, net Total assets $ 51,000 483,600 94,100 443,520 1,072,220 622,000 (161,000) 461,000 $1,533,220 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities s 211,400 23,000 Long-term note payable Total liabilities Common stock Retainkd earnings Total stockholders equity 515,000 749,400 346,000 437,820 783,820 $1,533,220 Total liabilities and equity

Solution

Sales Budget Budgeted Units Sales Budgeted Unit Price Budgeted Sales Dollar Apr-17 24000 31 744000 May-17 16600 31 514600 Jun-17 22200 31 688200 Totals for the Second Quarter 62800 1946800 Production Budget Next Month Budgeted Sales April May June Ratio of inventory to future sales 70% 70% 70% Budgeted ending inventory (units) 11620 15540 16800 Add: budgeted sales for the month (units) 24000 16600 22200 Required units of available production 35620 32140 39000 Less: Beginning inventory (units) 16800 11620 15540 Units to be produced 18820 20520 23460 Raw Material Budget April May June Production Budget 18820 20520 23460 Materials requirement per unit. 0.5 0.5 0.5 Materials needed for production. 9410 10260 11730 Add budgeted ending inventory. 5130 5865 5100 Total materials requirements (units). 14540 16125 16830 Deduct beginning inventory. 4705 5130 5865 Materials to be purchased. 9835 10995 10965