Problem 9-17 Schedules of Expected Cash Collections and Disbursements; Balance Sheet [L02] Deacon Company is a merchandising company that is preparing a budget for the second quarter of the calendar year. The following information is available. DEACDN COMPANY Balance Sheet March 31 Assets Cash $ 51,999 Accounts receivable 46,888 Inventory 32,888 Plant and equipment, net of depreciation 99,888 Total assets $ 238,888 Liabilities and Shareholders' Equity Accounts payable $ 58,888 Common shares 52,888 Retained earnings 116,888 Total liabilities and shareholders' equity $ 2383999 | Budgeted Income Statements April May June Sales $ 186,888 $ 118,888 $ 125,888 Cost of goods sold 63,688 66,888 75,888 Gross margin 42,488 44,888 58,888 Selling and administrative expenses 15,888 15,888 13,888 Operating income $ 2?,488 $ 29,888 $ 3?,888 Budgeting Assumptions: Total liabilities and shareholders' equity $ 233,999 Budgeted Income Statements April May June Sales $ 195,999 $ 119,999 $ 125,999 Cost of goods sold 63,699 66,999 75,999 Gross margin 42,499 44,999 59,999 Selling and administrative expenses 15,999 15,999 13,999 Operating income $ 27,499 $ 291999 $ 37:999 Budgeting Assumptions: 8. Sixty percent of sales are cash sales and 40 percent of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80 percent are collected in the month subsequent to the sale. b. Budgeted sales for July are $144,000. 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. at Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold. 9. Depreciation expense is $1,200 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 30. (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 30 balance sheet.)