Deacon Company is a merchandising company that is preparing a budget for the second quarter of the calendar yeac. The following intormation is avalable. Budgeting Assumptions: a, Sixty percent of sales are cash sales and 40 percent of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80 percent afe collected in the month subsequent to the sale. b. Budgeted sales for July are $147000 while the budgeted cost of goods sold is 60%. c. 10% of merchandise inventory purchases ate pald 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 $14,000 plus 50% of the next month's cost of goods 50 ld e. Depreciation expense is $1,700 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 coliectlons for April, May, and June: 2. Calculate the budgeted merchandise purchases for Apri, May, and June. 3. Colculate the expected cash disbursements for merchandise purchases for Apal May, and June 4. Prepare a budgeted balance sheet at June 30. (Hint You need to calculate the cash paid for selling and adrinistiative expenses during April, May, and June to determine the cash balance in your June 30 balance sheet) Complete this question by entering your answers in the tabs below. Caiculate the expected cash collections for April, May, and June, e. Depreciation expense is $1,100 per month. All other selling and administrative expenses are paid in full in the month the expense is incured Roquired: 1. Calculate the expected cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, Moy, and June 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30. (Hint: You need to calculate the cash paid for selling and administrative expenses during Aprit, May, and June to determine the cash balance in your June 30 balance sheet). Complete this question by entering your answers in the tabs below. Calculate the expected casti collections for Mpro, May, and June. e. Depreciation expense is $1100 per month. All other seli incured. Required: 1. Calculate the expected cash collections for Aprit, May, and June. 2. Calculate the budgeted merchandlse purchases for April, Moy, and June. 3. Calculate the expected cash disbursements for merchandise purchases for Apnil, May, and June. 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) Complete this question by entering your answers in the tabs below. Calculate the budgeted merchandise purchases for Apra, May. and June. e. Depreciation expense is $1,100 per month 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 30 . (Hint: You need to calculate the cash pald for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30 balance sheet) Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. Prepate a budgeted balance sheet at June 30. (Hint: You need to calculate the cash paid for selling and administrative expenses during Apeil, Mav, and June to determine the cash balance in your June 30 balance sheet:)
