TES-312 accountants have made the folowing estimates 1 Sales for April, May, June, and July will be $340,000, $360,000, $350,000 and $370,000 respectively month of the 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. Al of the accounts recevable at March 31 will be colected April 3. Each month's ending inventory must equel 25% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40% of in merchandise purchase purchase and the remaining 60% in the month following the purchase. All of the accounts payable at March 21 are related to previous merchandse purchases and will be paid in Apr 4 Monthly selling and administrative expenses are always $44,000. Each month $6.000 of this total amount is deprecation experse and the remaining $38.000 spent for expenses that are paid in the month they are incurred 5. The company will not bonow money or pay or declere dividends during the 2nd quarter The company wif not issue any common stock or repurchase its own stack during the 2nd How much is the company's expected merchandise purchases in the month of June Required information TES-312 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. Assets Cash TES-312 Inc. Balance Sheet March 31 $ 84,000 144,000 Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity de the following estimates 63,750 223,000 $514,750 $ 84,000 349,008 81,758 $514,750