Durnev Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The companys balance sheet as of June 30th is shown below:

Durnev Corporation
Balance Sheet
June 30
Assets
Cash	$	74,000
Accounts receivable		143,000
Inventory		73,500
Plant and equipment, net of depreciation		224,000
Total assets	$	514,500
Liabilities and Stockholders Equity
Accounts payable	$	85,000
Common stock		310,000
Retained earnings		119,500
Total liabilities and stockholders equity	$	514,500