Descon Company is a merchandising company thot is preparing o budget for the three$-$month period ended June $30$th$.$ The following

information is available

Budgeting Assumptions:

a$.60\%$ of soles ore cash soles and $40\%$ of soles are credit soles. Twenty percent of all credit sales ore collected in the month of sale

and the remaining $80\%$ are collected in the month subsequent to the sole.

b$.$ Budgeted sules for July ore $$229,000.$

c$.10\%$ of merchondise inventory purchases are poid in cosh at the time of the purchase. The remaining $90\%$ of purchases are credit

purchases. All purchoses on credit are poid in the month subsequent to the purchase. The accounts payable at March $31$ will be

paid in April.

d$.$ Each month's ending merchondise inventory should equal $$10,000$ plus $50\%$ of the next month's cost of goods sold.

e$.$ Depreciation expense is $$1,650$ per month. All other selling ond administrative expenses are poid in full in the month the expense is

incurred.

Required:

Calculate the expected cosh collections for April, Moy, and June.

$2$ Calculate the budgeted merchandise purchases for April, May, and June.

Colculate the expected cosh disbursements for merchandise purchases for April, May, and June.

Prepare a budgeted bolance sheet ot June $30$ th$.($Hint: You need to calculate the cosh poid for selling and administrative expenses

during April, May, and June to determine the cash bolance in your June $30$th balonce sheet$)$