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	$	73,600
Accounts receivable		39,600
Inventory		66,700
Buildings and equipment, net of depreciation		192,000
Total assets	$	371,900
Liabilities and Stockholders Equity
Accounts payable	$	167,300
Common stock		70,000
Retained earnings		134,600
Total liabilities and stockholders equity	$	371,900

Budgeted Income Statements
	April			May			June
Sales	$	189,000		$	199,000		$	219,000
Cost of goods sold		113,400			119,400			131,400
Gross margin		75,600			79,600			87,600
Selling and administrative expenses		19,900			21,400			24,400
Net operating income	$	55,700		$	58,200		$	63,200

Budgeting Assumptions:

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.

Budgeted sales for July are $229,000.

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.

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

Depreciation expense is $1,650 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.

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.)