Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The followin information is available Book Point Deacon Company Balance Sheet March 31 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders equity 50,000 30,000 43,900 131,000 264,900 Ferences $ $ 72,000 70,000 122.900 264,900 5 Budgeted Income Statements April Sales $113,000 Cost of goods sold 62.00 Gross margin 45,200 Selling and administrative expenses 17,000 Net operating income $ 28,200 May $123,000 23,00 49,200 18,500 $ 30,700 June $143,000 35,800 57,200 21,500 $ 35,700 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 $153,000. 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. e. Depreciation expense is $1,050 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 Apr 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 during April, May, and June to determine the cash balance in your June 30th balance sheet) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4