Problem 8-27 (Algo) Cash Collections; Cash Disbursements; Budgeted Balance Sheet [LO8-2, LO8-3, L08-4, LO8-10] Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30 th. The following information is avallable 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 $145000. c. 10% of merchandise inventory purchoses are paid in cash at the time of the purchase The remaining 9006 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 Aprit 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 $1,500 per month. All other selling and administrative expenses are paid in full in the month the expense is incured. Required: 1. Calculate the expected cash collections for April, May, and June 2. Calculate the budgeted merchandise purchases for Apat, May, and June 3. Calculate the expected cash disbursements for merchandise purchases for Aprit, May, and June. 4. Prepare a budgeled balance sheet at June 30th. (Hint You need to cakculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30 th bolance sheet)