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required infro: TES-312 Inc. is a retaller. Its accountants are preparing the company's 2nd quarter master budget. The company has the

lollowing balance sheet as of March 31.

Balance Sheet

March

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TES-312 accountants have made the following estimates:

Sales for April, May, June, and July will be $340,000. $360,000. $350,000, and $370,000, respectively.

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 cost of goods sold

is 75% 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 March 31 are related to previous merchandise purchases and will be paid in April.

Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 is spent for expenses that are pald in the month

they are incurred

The company will not borrow money or pay or declare dividends during the 2nd quarter. The company will not issue any common stock or repurchase its own stock during the 2nd quarter.

How much is the company's expected total Net Operating Income for the 2nd quarter ending on June 30?

Required information TES-312 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter following balance sheet as of March 31. TES-312 Inc. Balance Sheet March 31 Assets Cash Accounts receivable Inventory $ 84,000 144,000 63,750 223,000 Plant and equipment, net of depreciation Total assets $514,750 Liabilities and Stockholders' Equity Accounts payable Common stock $ 84,000 349,000 81,750 Retained earnings Total liabilities and stockholders' equity $514,750