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 $ 68,088 Accounts receivable 36,088 Inventory 31,088 Plant and equipment, net of depreciation 183,088 Total assets $ 238,888 Liabilities and Shareholders' Equity Accounts payable $ 42,888 Common shares 67,888 Retained earnings 121,888 Total liabilities and shareholders' equity $ 239,099 I Budgeted Income Statements April May June Sales $ 109,080 $ 110,808 $ 136,008 Cost of goods sold 68,088 63,888 78,808 Gross margin 41,888 47,888 66,888 Selling and administrative expenses 11,888 11,888 18,888 Operating income $ 38,888 $ 36,888 $ 56,888 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 are collected in the month subsequent to the sale. b. Budgeted sales for July are $126,000. 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 $14,000 plus 50% ofthe next month's cost of goods sold. 9. Depreciation expense is $1,400 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 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. Required 1 Required 2 Required 3 Required 4 Calculate the expected cash collections for April, May, and June. April May June Quarter Total cash collections Required 1 Required 2 Required 3 Required 4 Calculate the budgeted merchandise purchases for April, May, and June. April May June Quarter Budgeted merchandise purchasesRequired 1 Required 2 Required 3 Required 4 Calculate the expected cash disbursements for merchandise purchases for April, May, and June. Budgeted cash disbursements for merchandise purchases _ _ _ _