=+Current assets as of June 1 include cash of $45,000, marketable securities of $65,000, and accounts receivable of $143,400 ($105,000 from May sales and $38,400 from April sales). Sales on account in April and May were $96,000 and $105,000, respectively.

Current liabilities as of June 1 include a $60,000, 12%, 90-day note payable due August 20 and $8,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is