TES-517. 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 Accounts receivable Inventory TES-517 Inc. Balance Sheet March 31 Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 80,000 135,000 41,250 211,000 $ 467,250 $ 72,000 345,000 50,250 $ 467,250 TES-517 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $220,000, $240,000, $230,000, and $250,000, 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. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 25% 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 payable at March 31 are related to previous merchandise purchases and will be paid in April. 4. Monthly selling and administrative expenses are always $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining

TES-517 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. TES-517 accountants have made the following estimates: 1. Sales for April, May, June, and July will be \\( \\$ 220,000, \\$ 240,000, \\$ 230,000 \\), and \\( \\$ 250,000 \\), 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. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal \25 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 payable at March 31 are related to previous merchandise purchases and will be paid in April. 4. Monthly selling and administrative expenses are always \\( \\$ 40,000 \\). Each month \\( \\$ 6,000 \\) of this total amount is depreciation expense and the remaining How much is the company's expected cash collections in the month of May? Multiple Choice \\( \\$ 143,000 \\) \\( \\$ 227,000 \\) \\( \\$ 84,000 \\) \\( \\$ 156,000 \\)