1 Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available Skipped Deacon Company Balance Sheet March 31 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 58,200 34,800 68,500 118, eee $ 279,500 eBook $ 95,000 70,000 114,500 $ 279,500 Budgeted Income Statements April Sales $195, Cost of goods sold 117, Gross margin 78,000 Selling and administrative expenses 18,600 Net nenntinn income 59 AAA May $25 , 123,000 82,000 20, 100 61 QAA June $225,000 135,000 90,000 23,100 66 GAA May Budgeted Income Statements April Sales $195,000 Cost of goods sold 117,000 Gross margin 78,000 Selling and administrative expenses 18,600 Net operating income $ 59,400 $205,000 123,000 82,000 20,100 $ 61,900 June $225,000 135,000 90,000 23,100 $ 66,900 Budgeting Assumptions: a. 60% of sales are cash sales and 40% of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80% are collected in the month subsequent to the sale. b. Budgeted sales for July are $235,000. c. 10% of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining 90% of purchases are chodit purchases. All purchases on credit are paid in the month subsequent to the purchase. The accounts payable at March 31 will be paid in April. d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold. e. Depreciation expense is $1,350 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Required: 1. Calculate the expected cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June. Prev 1 of 3 Next > Saved Help Save & Exit Submit Required: 1. Calculate the expected cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30th balance sheet.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the expected cash collections for April, May, and June. April May June Quarter Total cash collections K Required 1 Required 2 > 1 of 3 TH Prev Next > 10:45 PM ay, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and a during April, May, and June to determine the cash balance in your June 30th balance sheet.) pped Complete this question by entering your answers in the tabs below. Book Required 1 Required 2 Required 3 Required 4 Calculate the budgeted merchandise purchases for April, May, and June. April May June Total Budgeted merchandise purchases cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and ad during April, May, and June to determine the cash balance in your June 30th balance sheet.) Ded Complete this question by entering your answers in the tabs below. ok Required 1 Required 2 Required 3 Required 4 Calculate the expected cash disbursements for merchandise purchases for April, May, and June. April May June Quarter Budgeted cash disbursements for merchandise purchases Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30th balance sheet.) Deacon Company Balance Sheet June 30 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity