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

PIXELIZE INC. Balance Sheet May 31
Assets
Cash	$	8,100
Accounts receivable		72,200
Inventory		30,200
Buildings and equipment, net of depreciation		501,000
Total assets	$	611,500
Liabilities and Shareholders Equity
Accounts payable	$	90,150
Note payable		15,100
Common shares		421,000
Retained earnings		85,250
Total liabilities and shareholders equity	$	611,500

Pixelize Inc. has not budgeted previously, so it is limiting its master budget planning horizon to just one month aheadnamely, June. The company has assembled the following budget data relating to June:

a.	Sales are forecast to be $251,000; $60,200 will be received in cash; the balance will be credit sales. One-half of the credit sales for a month are collected 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.
b.	Inventory purchases are expected to total $201,000 during the month of June. All of these purchases will be on account. Forty percent of all inventory purchases is paid for in the month of purchase with the other 60% paid the next month. The entire balance of the May 31 accounts payable to suppliers will be paid during June.
c.	The inventory balance for June 30 is budgeted at $40,500.
d.	The selling and administrative expenses budget for June is $51,200, excluding depreciation. All of these expenses will be paid in cash. The depreciation budget is $2,050 for the month.
e.	The May 31 note payable that appears on the balance sheet will be paid in June. Interest expense for the month of June (all borrowings) will be $170, to be paid in cash.
f.	Warehouse equipment totalling $9,100 will be acquired for cash in June.
g.	In June, the company will borrow $18,150 from the bank by issuing a new note payable to the bank for that same amount. The new note will be due in one year.

Required:

1.	Prepare a cash budget for June. Support your budget with a schedule of expected cash collections from sales and a schedule of expected cash disbursements for inventory purchases. (Negative amounts should be indicated by a minus sign.)

2.	Prepare a budgeted income statement for June. Use the absorption costing income statement format.

3.	Prepare a budgeted balance sheet as of June 30.