The balance sheet of Snapshot, Inc., a distributor of photographic supplies, as of May 31 is given below: Snapshot, Inc. Balance Sheet May 31 Assets $ 9,000 Accounts receivable Inventory Buildings and equipment, net of depreciation 35,000 550,000 Total assets 671,000 Liabilities and Stockholders' Equity Accounts payable Note payable Capital stock Retained earnings $101,000 20,000 470,000 80,000 Total liabilities and stockholders' equity $671,000 The company is in the process of preparing a budget for June and has assembled the following data: a. Sales are budgeted at $300,000 for June. Of these sales, $70,000 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected the following month. All of the May 31 accounts receivable will be collected in June b. Purchases of inventory are expected to total $190,000 during June. These purchases will all be on account. Forty percent of all inventory purchases are paid for in the month of purchase; the remainder The June 30 inventory balance is budgeted at $30,000 expenses will be paid in cash. Depreciation is budgeted at $2,500 for the month. expense for June (on all borrowing) will be $800, which will be paid in cash. c. d. Selling and administrative expenses for June are budgeted at $66,000, exclusive of depreciation. These e. The note payable on the May 31 balance sheet will be paid during June. The company's interest f. New warehouse equipment costing $12,000 will be purchased for cash during June. g. During June, the company will borrow $23,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year