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 $212,000. 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. 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 $1,950 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Requirements: (1 pt) Calculate the expected cash collections for the quarter ending June 30th. (1 pt) Calculate the budgeted merchandise purchases for quarter ending June 30th. (1 pt) Calculate the expected cash disbursements for merchandise purchases for quarter ending June 30th. (1 pt) Prepare a budgeted balance sheet at June 30th. Merchandise Purchases Budzet Schedule of Expected Cash Disbursements for Merchandive Purchases Lindahl Corporation 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 $212,000. 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. 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 $1,950 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Requirements: (1 pt) Calculate the expected cash collections for the quarter ending June 30th. (1 pt) Calculate the budgeted merchandise purchases for quarter ending June 30th. (1 pt) Calculate the expected cash disbursements for merchandise purchases for quarter ending June 30th. (1 pt) Prepare a budgeted balance sheet at June 30th. Merchandise Purchases Budzet Schedule of Expected Cash Disbursements for Merchandive Purchases Lindahl Corporation