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 earnings Total liabilities and stockholders' equity $ 71,800 42,800 46,000 149,000 $ 309,600 $ 125, 100 70,000 114,500 $ 309,600 Budgeted Income Statements Sales Coot of goods sold Gross margin Selling and administrative expenses Net operating Income April May June $ 120,000 $ 130,000 $150,000 72,000 78,000 90.000 48,000 52,000 60,000 18, 100 19,600 22.600 $ 29,900 $ 32,400 $ 37,400 Budgeting Assumptions: 2. 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 muresear All murhaene an Ardit ara naid in the month e hannnt in the nurhan The Suntemush March will ha 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 of 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 $1,850 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 balaqce sheet at June 30th. (Hint: You need to calculate the cash paid for selling and administrative expenses during April May, and June lo 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 Calculate the expected cash collections for April, May, and June. April May Juno Quarter Total cash collections Required Required 2 > 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 $1,850 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 Calculate the budgeted merchandise purchases for April, May, and June. April May Juno Budgeted merchandise purchases Total CH 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 $1,850 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 4 Required 1 Required 2 Required 3 Calculate the expected cash disbursements for merchandise purchases for April, May, and June. April May June Quarter Budgeted cash disbursements for merchandise purchases 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 Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity