4 Required information TES-609 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. TES-609 Inc. Balance Sheet March 31 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity $ 82,000 129,000 52,500 217,000 $ 480,500 $ 78,000 Accounts payable Common stock 347,000 Retained earnings 55,500 Total liabilities and stockholders' equity $ 480,500 TES-609 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $280,000, $300,000, $290,000, and $310,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3 Each month's ending inventory must equal 25% of next month's cost of goods sold. The