Deacon Company is a merchandising company that is preparing a budget for the second quarter of the calendar year. The following information is available. Budgeting Assumptions: a. Sixty percent of sales are cash sales and 40 percent of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80 percent are collected in the month subsequent to the sale. b. Budgeted sales for July are $133,000 while the budgeted cost of goods sold is 60%. c. 10% of merchandise inventory purchases ore paid in cash at the time of the purchase. The rotnoining 90% of purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase. d. Each month's ending merchandise inventory should equal $13,000 plus 50% of the next month's cost of goods sold. e. Depreciation expense is $1,400 per month All other seling 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 Aprili, 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 30 . (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 balance sheet.) Complete this question by entering your answers in the tabs below. Calculate the expected cash collections for April, May, and June. Required: 1. Calculate the expected cash collections for April, May, and June, 2. Calculate the budgeted merchandise purchases for Aprili, May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for Aprili, May, and June. 4. Prepare a budgeted balance sheet at June 30 . (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 balance sheet) Complete this question by entering your answers in the tabs below. Calculate the budgeted merchandise purchases for April, May, and June. 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 ot June 30. (Hint:You need to calculate the cosh paid for selling and administrative expenses during April, May, and June to determine the cash bafance in your June 30 balance sheet) Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for merchandi ise purchases for April, May, and June. Complete this question by entering your answers in the tabs below. Prepare a budgeted balance sheet at June 30. (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 balance sheet.)
