(Answered) : The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: ZIGBY MANUFACTURING Est

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:

ZIGBY MANUFACTURING
Estimated Balance Sheet
March 31, 2017
Assets
Cash $ 54,000
Accounts receivable 354,375
Raw materials inventory 100,495
Finished goods inventory 333,000
Total current assets 841,870
Equipment, gross 628,000
Accumulated depreciation (164,000 )
Equipment, net 464,000
Total assets $ 1,305,870
Liabilities and Equity
Accounts payable $ 212,195
Short-term notes payable 26,000
Total current liabilities 238,195
Long-term note payable 514,000
Total liabilities 752,195
Common stock 349,000
Retained earnings 204,675
Total stockholders’ equity 553,675
Total liabilities and equity $ 1,305,870

To prepare a master budget for April, May, and June of 2017, management gathers the following information:

Sales for March total 22,500 units. Forecasted sales in units are as follows: April, 22,500; May, 19,500; June, 21,700; and July, 22,500. Sales of 254,000 units are forecasted for the entire year. The product’s selling price is $22.50