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Required information TES-415 Inc. Is a retaller. Its accountants are preparing the company's 2 nd quarter master budget. The company has the following balance sheet

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Required information TES-415 Inc. Is a retaller. Its accountants are preparing the company's 2 nd quarter master budget. The company has the following balance sheet as of March 31 . TES- 415 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $250,000,$270,000,$260,000, and $280,000, 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 sale. Alf of the accounts receivable at March 31 will be collected in Aprit. 3, Each month's ending imventory must equal 30% 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 TES 415 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $250,000,$270,000,$260,000, and $280,000, respectively 2. Al sales are on credt 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 recelvable at March 31 will be collected in April. 3. Each month's ending inventory must equal 30% 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 pryable at March 31 are related to previous merchandise purchases and will be pald in April. 4. Monthly seling and administrative expenses are always $46,000. Each month $5,000 of this total amount is depreciation expense and the remaining $41,000 is spent for expenses that are paid in the month they are incurred. 5. The company wil not borrow money or pay or declare dividends during the 2nd quartet. The campany wail not issue any common stock or repurchase its own stock during the 2 nd quarter. How much is the company's expected merchanelise purchases in the month of June? (1) Required information Multiple Choice $258,000 $199,500 $192,000 $200,250

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