9-17 Schedules of Expected Cash Collections and Disbursements; Balance Sheet [LO2] Deacon Company is a merchandising company that is preparing a budget for the second quarter of the calendar year. The following information is available. DEACON COMPANY Balance Sheet March 31 Assets Cash $ 60,000 Accounts receivable 36,000 Inventory 31,000 Plant and equipment, net of depreciation 103,000 Total assets $ 230,000 Liabilities and Shareholders Equity Accounts payable $ 42,000 Common shares 67,000 Retained earnings 121,000 Total liabilities and shareholders equity $ 230,000 Budgeted Income Statements April May June Sales $ 109,000 $ 110,000 $ 136,000 Cost of goods sold 65,400 66,000 81,600 Gross margin 43,60