Q3

marh25 DO 3 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 31 Assets Cash $ 65,200 Accounts receivable Inventory 38,800 Buildings and equipment, net of depreciation 43,300 175,000 Total assets $ 272,300 Liabilities and Stockholders' Equity Accounts payable Common stock $.66,200 70,000 116,100 Retained earnings Total liabilities and stockholders' equity $ 272,100 Budgeted Income Statements April May June Sales $ 111,000 $ 121,000 $141,000 Cost of goods sold 66,600 72,600 54,600 Gross margin 44,400 48,400 16,400 Selling and administrative expenses 21,100 24,000 27,800 tiet operating income $ 21,100 $ 23,000 $ 28,600 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 $151,000 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 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 $1,600 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred 3.33 ponts eBook Print 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 $1,600 per month. All other selling and administrative expenses are paid in full in the month the expense is Incurred. eBook Required: 1. Calculate the expected cash collections for April, May, and June. Print 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) References 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 June Quarter Total cash collections Required 1 Required 2 > Print References 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 e 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 budgeted merchandise purchases for April, May, and June. April May June Budgeted merchandise purchases Required 3 > Required 1 Total 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.) ces Complete this question by entering your answers in the tabs below. 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 4 >