Deacon Company is a merchandising company that is preparing a budget for the three$-$month period ended June $30$th$.$ The followin

information is available

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 $$1,900$ per month. All other selling and administrative expenses are paid in full in the month the expense

incurred.

Required:

Calculate the expected cash collections for April, May, and June.

Calculate the budgeted merchandise purchases for April, May, and June.

Calculate the expected cash disbursements for merchandise purchases for April, May, and June.

Prepare a budgeted balance sheet at June $30$th$.($Hint: You need to calculate the cash paid for selling and administrative expense

during April, May, and June to determine the cash balance in your June $30$th balance sheet.$)$

Answer is complete but not entirely correct.

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Prepare a budgeted balance sheet at June $30$th$.($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 $30$th balance sheet.$)$