A new company, is being established to manufacture and sell an electronic tracking device: the Trackit. The owners are excited about the future profits that the business will generate. They have forecast that sales will grow to 2,600 Trackits per month within five months and will be at that level for the remainder of the first year. The owners will invest a total of $250,000 in cash on the first day of operations (that is the first day of July). They will also transfer non-current assets into the company. Extracts from the company's business plan are shown below. Sales The forecast sales for the first five months are: Irackits (units) 1,000 Month July August September October 1,500 2,000 2,400 November 2,600 The selling price has been set at $140 per Trackit. Sales receipts Sales will be mainly through large retail outlets. The pattern for the receipt of payment is expected to be as follows: Time of payment Immediately One month later % of sales value 15* 25 Two months later 40 Three months later 15 The balance represents anticipated bad debts. * A 4% discount will be given for immediate payment

ll. Subject Accounting

Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June

Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2. Production budget.3. Direct materials budget. The management of Zigby Manufacturing prepared the following balance sheet for March 31.  ZIGBY MANUFACTURING Balance Sheet March 31 Assets     Liabilities and Equity     Cash   $ 65,000 Liabilities     Accounts receivable   399,000 Accounts payable $ 204,500   Raw materials inventory   90,200 Loan payable 27,000   Finished goods inventory   308,028 Long-term note payable 500,000 $ 731,500 Equipment $ 630,000   Equity     Less: Accumulated depreciation 165,000 465,000 Common stock 350,000         Retained earnings 245,728 595,728 Total assets   $ 1,327,228 Total liabilities and equity   $ 1,327,228  To prepare a master budget for April, May, and June, management gathers the following information.  Sales for March total 22,800 units. Budgeted sales in units follow: April, 22,800; May, 16,000; June, 23,000; and July, 22,800.…