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 1.iabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total Ilabilities and stockholders' equity 5 61,400 32,400 58,300 148,000 $ 300,100 $ 105, 100 70,000 125,000 $ 300,100 Budgeted Income statements April Sales 5161,000 cont of goods sold 96,600 Gross margin 64,400 Selling and administrative expenses 10,300 et operating income $ 46,100 May $171.000 102,600 61,400 10.000 $ 48,600 June $191,000 114,600 76,400 23,000 53,600 Budgeting Assumptions: a 60% of sales are cash sales and 40% of all 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 $201.000. 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 $1,200 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 expected cash collections for April, May, and June, April May June Quarter Total cash collections Calculate the budgeted merchandise purchases for April, May, and June. April May June Total Budgeted merchandise purchases Required 1 Required 2 SEXO Required 3 Required 4 Calculate the expected cash disbursements for merchandise purchases for April, May, and June. April May June Quarter Budgeted cash disbursements for merchandise purchases Required 1 Required 2 Required 3 wwwwww Required 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.) Deacon Company Balance Sheet June 30 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity
