Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available beacon Cospany Balance Sheet March 31 Assets Cash Accounts receivable Inventory buildings and equipment, net of depreciation Total assets Llabilities and Stockholders' Equity Accounts payable Conton stock Retained warnings Total 11bilities and stockholders' equity 60,200 30,800 60,400 124.000 $ 275,460 5 71,100 70,000 134,300 $ 275,400 thudgeted Income Statements April Sales $168,000 Cost of goods sold 100,800 Gross margin 67,200 Selling and administrative expenses 22,00 Net operating income $ 44,000 May 5178,000 106,800 71,200 21,900 $ 47,300 June 3198,000 110,000 79,200 26,000 $ 52,300 Budgeting Assumptions 0.60% 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 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 51100 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 Apni, 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. 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 pald 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: Required 2 Required Required Calculate the expected cash collections for April May, and June May June Quarter Total cash collections Rece Required 2 > ME
