Integration Exercise 3 Cash Budget, Income Statement, Balance Sheet, Statement of Cash Flows, Ratio Analysis (LC! 8-2, LU 8-3, LCI 8-4, LO 8-8, LCI 8-9, LO 8-10, LCI 13-2, LO 14-3] Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The company's balance sheet as of June 30 is shown below: Millen Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $120,000 188,000 3?,200 554,800 $ 8?8,000 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93,000 588,000 188,000 $ 8?8,000 Millen's managers have made the following additional assumptions and estimates: Millen's managers have made the following additional assumptions and estimates: 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and ?0% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 80% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 80% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. 4. Monthly selling and administrative