Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The company's balance sheet as of June 30th is shown below: Millen Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $120,000 166,000 37,200 554,800 $878,000 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93,000 586,000 199,000 $878,000 Millen's managers have made the following additional assumptions and estimates 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, issue