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	$ 60,000
Accounts receivable	30,000
Inventory	43,900
Buildings and equipment, net of depreciation	131,000
Total assets	$ 264,900
Liabilities and Stockholders Equity
Accounts payable	$ 72,000
Common stock	70,000
Retained earnings	122,900
Total liabilities and stockholders equity	$ 264,900

Budgeted Income Statements	April	May	June
Sales	$ 113,000	$ 123,000	$ 143,000
Cost of goods sold	67,800	73,800	85,800
Gross margin	45,200	49,200	57,200
Selling and administrative expenses	17,000	18,500	21,500
Net operating income	$ 28,200	$ 30,700	$ 35,700

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 $153,000.

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. The accounts payable at March 31 will be paid in April.

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

Depreciation expense is $1,050 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. Calculate the expected cash collections for April, May, and June. Complete this question by entering your answers in the tabs below. Calculate the budgeted merchandise purchases for April, May, and June. Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for merchandise 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 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.) Complete this question by entering your answers in the tabs below. Calculate the expected cash collections for April, May, and June. Complete this question by entering your answers in the tabs below. Calculate the budgeted merchandise purchases for April, May, and June. Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for merchandise 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 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.)