Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following nformation is available Deacon Company Balance Sheet March 31 Assets Canh Accounts receivable Inventory buildings and equipment, net of depreciation Total assets Liabilities and stockholders' Equity Nccounts payable Comenon stock Retained earningo Total liabilities and stockholders equity $58,600 33,200 40,000 142,000 16.273,800 $ 69,200 20.000 134.600 $273.00 Budgeted Income Statements Galos Coutot goods sold Gross margin Selling and administrative expenses Not operating income April May June 100.000 110.000 100.000 60.000 65.000 70,000 40,000 44,000 52000 22.100 23.500 25,600 12.900 9.20.400 $25.400 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 $140,000 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 occounts 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. c. Depreciation expense is $1250 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 Juno 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 sheot)