Help Save & Ex Submit 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 Assets Cash Accounts receivable Inventory buildings and equipment, net of depreciation Total assets Liabilities and Stockholders Equity Accounts payable Common stock Retaining Total liabilities and stockholders' equity 550. 33.200 40,000 142,000 27,000 $.09.200 70. 14. 5273.600 Sund 550.000 udgeted Income Statements Sales Cost of toods sold Oreal Selling and strate expenses operating con April 100.000 1.000 40.000 22.100 517.000 $110.000 $5,000 44,000 2100 5:20.400 528000 2011 $ 25,00 Budgeting Assumptions 600 of sales are cash sales and 409 of Sales are credit sales Twenty percent of all credit sales are collected in the month of APIER H16 Saw Selling and dinistrative penes Net operating Income Hele Save E 22,100 $ 17,900 Submit 1 23.co $ 20.00 20 5.25,400 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 $140,000 c 10% of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining 90s by purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase. The accounts payable at March 3 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 $1.250 per month. All other selling and administrative expenses are paid in foil in the month the expenses 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. Bequired Raould ed surfaunch SAW.52 CHAPTER Hely Save Sulimit 1 Decon Company Halance sheet June 30 Assets Cash 10 Does Accounts receivable inventory Buildings and equipment, (net) of depreciation 5 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total abilities and stockholders guilty
