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	$	58,200
Accounts receivable		34,800
Inventory		68,500
Buildings and equipment, net of depreciation		118,000
Total assets	$	279,500
Liabilities and Stockholders Equity
Accounts payable	$	95,000
Common stock		70,000
Retained earnings		114,500
Total liabilities and stockholders equity	$	279,500

Budgeted Income Statements
	April			May			June
Sales	$	195,000		$	205,000		$	225,000
Cost of goods sold		117,000			123,000			135,000
Gross margin		78,000			82,000			90,000
Selling and administrative expenses		18,600			20,100			23,100
Net operating income	$	59,400		$	61,900		$	66,900

Budgeting Assumptions:

1. 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.

2. Budgeted sales for July are $235,000.

3. 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.

4. Each months ending merchandise inventory should equal $10,000 plus 50% of the next months cost of goods sold.

5. Depreciation expense is $1,350 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.

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.)