Required information a retaller. Its accountants are preparing the company's 2 nd quarter master budget. The compary has the following balance sheet as of March 31. racountonts hove made the following estimates: 1 Sales for Apri, May, June, and July will be \\( \\$ 390,000, \\$ 410,000, \\$ 400,000 \\), and \\( \\$ 420,000 \\), 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 saie. All of the accounts recelvable at March 31 wall be collected in Aprit. 3. Each month's ending inventory must equal \30 of next month's cost of goods sold. The cost of goods sold is \60 of saies. The company pays for \40 of its merchandise purchases in the month of the purchose and the remaining \60 in the month following the purchase, All of the accounts payoble at March 31 are retated to previous merchandise purchases and will be paid in April. 4. Monthly selling and administrative expenses are always \\( \\$ 54,000 \\). Each month \\( \\$ 7,000 \\) of this total amount is depreciation expense and the remaining \\( \\$ 47,000 \\) is spent for expenses that are paid in the month they are incurred. 5. The company will not borrow money or poy or declare dividends during the 2 nd quarter The company will not issue any common stock of repurchase its own stock during the 2 nd quarter. How rnuch is the company's expected merchandise purchases in the month of June