Deacon Company Is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following Information is available Deacon Company Balance Sheet March 31 Assets Cash $ 60, 290 Accounts receivable 30, 880 Inventory 60, 480 Buildings and equipment, net of depreciation 124, 080 Total assets $ 275,408 Liabilities and Stockholders' Equity Accounts payable $ 71, 160 Common stock 70,680 Retained earnings 134,380 Total liabilities and stockholders' equity $ 275, 480 Budgeted Income Statements April May June Sales $ 168, 680 $ 178,806 $ 198,908 Cost of goods sold 180, 880 186, 806 118, 890 Gross margin 67, 280 71,280 79, 209 Selling and administrative expenses 22,480 23,980 26,909 Net operating income $ 44, BBB $ 47,306 $ 52,308 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 $208,000. 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 pald 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 $1,100 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 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 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.) Deacon Company Balance Sheet June 30 Assets Cash 198,560 (x Accounts receivable 63,360 Inventory 72,400 Buildings and equipment, net of depreciation 120,700 Total assets 455,020 Liabilities and Stockholders' Equity Accounts payable 109,620 Common stock 70,000 Retained earnings 275,400 * Total liabilities and stockholders equity $ 455,020