Assets Deacon Company Balance Sheet March 31 Cash $ 73,600 Accounts receivable 39,600 Inventory 66,700 Buildings and equipeent, net of depreciation 192,000 Total assets $371,900 Liabilities and Stockholders' Equity Accounts payable $167,300 Common stock 70,000 Retained earnings 134,600 Total liabilities and stockholders' equity $371,900 Budgeted Income Statements Apr 11 Sales Cost of goods sold $189,000 113,400 May $199,000 119,400 June $219,000 131,400 Gross margin 75,000 79,600 Selling and adinistrative expenses 19,900 21,400 87,000 24,400 Net operating Income $55,700 $50,200 $63,200 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 $229,000 c. 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 50% of the next month's cost of goods sold. Depreciation expense is $1,650 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 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 ouring April, May, and June to determine the cash balance in your June 30th balance sheet