3 2 The balance sheet of Hughes Inc., a hockey supplies distributor, as of Mayr 31 is given below: Hughes INC. Balance Sheet May 31. 21011: 9 points ASSETS Cash $18,000 Accounts receivable 85,000 Inventory 30,000 Buildings and equipment. net of depreciation M Total assets $616,000 LIABILITIES AND SHAREHOLDERS' EGIJI'I'Ir Accounts payable. Suppliers $90,000 Note payable 22,000 Common shares 419,000 Retained earnings 85,000 Total liabilities and shareholders' equity $616,000 Hug hes Inc. has not budgeted previously, so it is limiting its master budget planning horizon to just one month ahead namely. June. The company has assembled the following budget data relating to June: 0 Sales are forecast to be $300,000; $50,000 will be received in cash; the balance will be credit sales. Onehalf ofthe credit sales for a month are collect in the month of saleI and the balance is collected the next month. The entire May 31 accounts receivable balance will be collected in June. 0 Inventory purchases are expected to total $180,000 during the month of June. All of these purchases will be on account Sixty percent ofall inventory purchases is paid for in the month of purchase with the other 40% paid the next month. The entire balance of the May 31 accounts payable to suppliers will be paid during June. I The selling and administrative expenses budget for June is $39,000, excluding depreciation. All of these expenses were paid in cash. 0 The May 31 note payable that appears on the balance sheet will be paid in June. - Warehouse equipment totaling $20,000 will be acquired for cash in June. Required: 1. What is the total amount of cash to be received in June? 2. What is the total amount of cash to be paid out in June? 3. Given your results from the analysis above, comment on the liquidity of Hughes Inc. Specically, do you think they'll be able to meet cash ow obligations for the month of June