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 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained varnings Total Ilabilities and stockholders equity 5 62.000 43,600 46,000 107.000 5 258,600 5 63,600 90,000 1250N 5258.600 Budgeted Income Statements April Sales $120,000 Cost of goods sold 22.000 Gross margin 40,000 Selling and administrative expenses 24,300 Net operating Income $ 23,100 Hay $10,000 78.000 52.000 26,400 5 25.600 June 5150,000 0.000 60,000 29,400 5.30,600 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 $160,000 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 $1900 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) 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 2 > Required 1 Required 2 Required 3 Required 4 Calculate the budgeted merchandise purchases for April, May, and June. April May June Total Budgeted merchandise purchases Required 1 Required 2 Required 3 Required 4 Calculate the expected cash disbursements for merchandise purchases for April, May, and June April May June Budgeted cash disbursements for merchandise purchases Quarter