The balance sheet of Phototec, Inc., a distributor of photographic supplies, as of May 31 is given below:

Phototec, Inc. Balance Sheet May 31
Assets
Cash	$	9750
Accounts receivable		65,000
Inventory		32,500
Buildings and equipment, net of depreciation		542,750
Total assets	$	650,000
Liabilities and Stockholders' Equity
Accounts payable	$	78,000
Note payable		14,300
Capital stock		479,700
Retained earnings		78,000
Total liabilities and stockholders' equity	$	650,000

The company is in the process of preparing a budget for June and has assembled the following data:

a.	Sales are budgeted at $261,000 for June. Of these sales, $80,000 will be for cash; the remainder will be credit sales. One-half of a month