Problem 9-17 Schedules of Expected Cash Collections and Disbursements; Balance Sheet [LO2] Deacon Company is a merchandising company that is preparing a budget for the second quarter of the calendar year. The following information is available. DEACON COMPANY Balance Sheet, March 31 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total liabilities and shareholders' equity $ 64,000 28,000 43,000 12,000 $227,000 5 43,000 66,000 118,000 $227,000 Budgeted Income Statements April Sales $110,000 May $117,000 June $123,000 Cost of goods sold- 60,000 70,200 75,000 Gross margin 44,000 46,800 49,00 Selling and administrative expenses 15,000 15,000 20,000 Operating income $ 29,000 3 31,000 $ 29,200 Check my work