Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available 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 $1,700 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. 52,300 Deacon Company Balance Sheet March 31 Assets Cash $ 57,600 Accounts receivable 40,400 Inventory Buildings and equipment, net of depreciation 173,000 Total assets $323,300 Liabilities and Stockholders' Equity Accounts payable $115,400 Common stock 70,000 Retained earnings 137,900 Total liabilities and stockholders' equity $323,300 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.) (Ctrl) Budgeted Income statements April Sales $ 141,00 0 June 171,00 102,60 Cost of goods sold Gross margin Selling and administrative expenses Net operating income 84,600 56,400 21,100 May 151,00 $ 0 90, 600 60,400 22,600 $ 37,800 63,400 25,600 35,300 $ 42,000 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 $181,000. 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