The balance sheet of Hughes Inc., a hockey supplies distributor, as of May 31 is given below: Hughes INC. Balance Sheet May 31, 2XXX ASSETS Cosh $18,000) Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets 85,000 30,000 483.000 $616,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable. Suppliers $90,000 Note payable 22.000 Common shares 419,000 Retained earnings 85.000 Total liabilities and shareholders' equity $616,000 Hughes Inc. has not budgeted previously, so it is limiting its master budget planning horizon to just one month ahead - namely, June. The company has assembled the following budget data relating to June: Sales are forecast to be $300,000 $50,000 will be received in cash; the balance will be credit sales. One-half of the credit sales for a month are collect in the month of sale, and the balance is collected the next month. The entire May 31 accounts receivable balance will be collected in June, Inventory purchases are expected to total $180,000 during the month of Je. All of these purchases will be on account. Sixty percent of all inventory purchases is pold for in the month of purchase with the other 40% paid the next month. The entire balance of the May 31 accounts payable to suppliers will be paid during June. The selling and administrative expenses budget for June is $39,000, excluding depreciation. All of these expenses were paid in cash, The May 31 note payable that appears on the balance sheet will be paid in June.