Required informotion TES-824 thei is a retalket. lts accountants are preparing the compary's. 2nd quarter master budget. The company has the following balance sheetas of March 31. TES-824 accountants have made the foliowing estimates: 1. Sales for April, May, June, and July will be $270,000,$290,000,$280,000, and $300,000, respectively. 2 All sales are on credit. Each month's credit saies are collected 35% in the month of sale and 65% in the month following the sake All of the accounts ieceivable at March 31 will be collected in Aprill. 3 Each manth's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods soidd is 6oss of males. Fhe compary piys for 40s of its metchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase Alt of the accounts poyabie at March 3 t are related to previous merchandise purchases and will be paid in Apil. 4. Monthly selling and administratbye expenses are atways $50.000. Each month $5,000 of this total amount is depeeciation expense and the remaining $45,000 is spent for expenses that are patd in the month they are incured. 5. The company will not borrow money or poy or declare dividends during the 2nd quartec The compamy wil not issue any comion stock or regurchase ts own stock during the 2nd quarter. How much is the company's expected merchandise purchases in the month of June? Multiple Choice $165,600 $171,600 $222,000 $172,200