Chapter 10 Livanos, Inc. records al its sales as credit sales and pays cash operating costs in the month incurred. Amounts for 2017 are given in the table that follows. Additional assumptions are 1) Amounts due from customers are collected 40% in the month of sale and 60% in the following month; 2) The ratio of Cost of goods sold to Sales is 65%; 3) Livanos pays for inventory purchases 20% in the month of the purchase and 80% in the following month 4) Monthly operating expenses are: Salaries, $60,000; Depreciation, 525,000; Rent, $20,000; and Utilities, 53, 5) Accounts payable is only used for inventory acquisitions. Use the following worksheet to determine the ending cash balance in May, assuming the beginning cash balance in April is $180 March April S400,000 S300,000 S280,000 $250,000 $500,000 S120,000 S112,000 S100,000 $200,000 $240,000 May June July Budgeted sales Budgeted purchases Cash Account April May Budget Debit Credit Debit Credit Sales March April May June July Purchases March April May June July Salaries Rent Depreciation Utilities Totals Net Increase (decrease) 400,000 $300,000 280,000 $250,000 500,000 Cash Collections are Debits to the Cash Cash Disbursements are Credits to the Cash account 120,000 112,000 $ 100,000 200,000 $240,000 $ 60,000 20,000 $25,000 $30,000 Opening Cash Balance Ending Cash Balance $180,000