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 Accounts receivable Inventory Buildings and equipment, net of $ 8,700 73,400 31,400 507,000 depreciation Total assets $620,500 Liabilities and Shareholders Equity Accounts payable Note payable Common shares Retained earnings $ 91,050 15,700 427,000 86,750 Total liabilities and shareholders $620,500 equity Pixelize 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: a.Sales are forecast to be $257,000; $61,400 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 $207,000 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 $43,500 d. The selling and administrative expenses budget for June is $52,400, excluding depreciation. All of these expenses will be paid in cash. The depreciation budget is $2,350 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 $230, to be paid in cash. f. Warehouse equipment totalling $9,700 will be acquired for cash in June g.In June, the company will borrow $19,050 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