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P9-11 Master Budget Preparation The balance sheet of Phototec, Inc., as of May 31 is given below: PHOTOTEC, INC. Balance Sheet May 31 Assets Cash $ 8.000 Accounts receivable 72,000 Inventory 30,000 Plant and equipment, net of depreciation 500,000 Total assets $610,000 Liabilities and Stockholders' Equity Accounts payable, suppliers $ 90,000 Note payable 15,000 Capital stock, no par 420,000 Retained earnings.. 85,000 Total liabilities and stockholders' equity $610,000 Phototec, Inc., has not budgeted previously, and for this reason it is limiting its master budget planning horizon to just one month ahead-namely, June. The company has assem- bled the following budgeted data relating to June: a. Sales are budgeted at $250,000, of these sales, $60,000 will be for cash; the remainder will be credit sales. Onc-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the month following. All of the May 31 accounts receivable will be collected in June. b. Purchases of inventory are expected to total $200,000 during June. These purchases will all be on account. Forty percent of all inventory purchases are paid for in the month of purchase; the remainder is paid in the following month. All of the May 31 accounts payable to suppliers will be paid during June. c. The June 30 inventory balance is budgeted at $40,000. d. Operating expenses for June are budgeted at $51.000, exclusive of depreciation. These expenses will all be paid in cash. Depreciation is budgeted at $2,000 for the month. e. The note payable on the May 31 balance sheet will be paid during June. The company's interest expense for June (on all borrowing) will be $500, which will be paid in cash. f. New equipment costing $9,000 will be purchased for cash during June. g. During June, the company will borrow $18,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. 1. Prepare a cash budget for Junc. Support your budget with schedules showing budgeted cash receipts from sales and budgeted cash payments for inventory purchases. 2. Prepare a budgeted income statement for June. Use the traditional income statement format, as shown in Schedule 9. 3. Prepare a budgeted balance sheet as of June 30