Veacon Company is a merchandising company that is preparing a budget tor the second quarter of the calendar year. I he tollowing

information is available.

Budgeting Assumptions:

a$.$ 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$ while the budgeted cost of goods sold is $60\%.$

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.

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 $$1,200$ per month. All other selling and administrative expenses are paid in full in the month the expense is

incurred.

Required:

Calculate the expected cash collections for April, May, and June.

Calculate the budgeted merchandise purchases for April, May, and June.

Calculate the expected cash disbursements for merchandise purchases for April, May, and June.

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.$)$