3 Check my work Problem 8-27 Cash Collections; Cash Disbursements, Budgeted Balance Sheet (LOB 2, LOB-3, LOB-4, LOB-10) Deacon Company is a merchandising company that is preparing a budget for the three month period ended June 30. The following information is available Deacon Company Balance Sheet March 31 Assets Cash $ 68,400 Accounts receivable 35,600 Inventory 67,300 Buildings and equipment, net of depreciation 179, een Total assets $ 350, 300 Liabilities and Stockholders' Equity Accounts payable $ 155,680 Connon stock 70,000 Retained earnings 124,700 Total liabilities and stockholders equity $ 350,300 aces Budgeted Income Statements April Sales $191, eee Cost of goods sold 114,600 Gross margin 76,400 Selling and administrative expenses 16,900 Net operating income $ 59,500 May $281,000 120,600 80,400 18.400 $ 62,000 June $221,000 132,600 88, 400 21,400 $ 67,000 Budgeting Assumptions 60% of sales we cash sales and 40% of sales we credit sales Twenty percent of all credit sales we collected in the montate and the remaining to are collected in the month subsequent to the sale. b Budgeted sales for July are $231,000 10 of merchandise Inventory purchases are paid in cash at the time of the purchase. The remaining 90% of purchases are credit 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 soll of the next month's cost of goods sold Depreciation expense is $1,400 per month. All other seling and administrative expenses are paid in full in the month the expenses incurred Required: 1. Cicate the expected cash collections for April, Max, and une. 2. Cicate the budgeted merchandise purchases for Apr May and June 1. Calculate the expected cash disbursements for merchandise purchases for April May and une 4. Prepare a bugeted balance sheet at June 30. intYou need to calculate the cash paid foring and administrative expenses during ontMey wide to determine the cash balance in your June 30 balance sheet Complete this question by entering your answers in the tabs below. Heel May, and June Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a budgeted balance sheet at June 30. (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 30 balance sheet.) Deacon Company Balance Sheet June 30 Assets Cash Accounts receivable Inventory Buildings and equipment, (net) of depreciation 70,720 79,300 174,800 $ 324,820 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 122,040 70,000 Total abilities and stockholders equity $ 192,040