Image is clear in my browser as well on my phone...I am not sure how to make the image any clearer.
Deacon Company is a merchandising company that is preparing a budget for the three-month perlod 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 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 55,400 41,200 53,200 180, eee 329,800 $ $ 143,500 70,000 116,300 $ 329,800 Budgeted Income Statements April Sales $144,000 Cost of goods sold 86,400 Gross margin 57,600 Selling and administrative expenses 20, 300 Net operating income $ 37, 300 May $154, eee 92,400 61,6ee 21,800 $ 39,800 June $174, eee 104,400 69,600 24,800 $ 44,800 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 $184,000. 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 pald 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 $1,750 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 Total cash collections June Quarter Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Calculate the budgeted merchandise purchases for April, May, and June. April May June Total Budgeted merchandise purchases Required 1 Required 2 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 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 Required 3 Required 4
