apter 9: Assignment Help Seve El Sutimit 6 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 Salance sheet March 31 Aaset Cash $ 64,000 Accounts receivable 20,000 Inventory 45,000 plant and equipment, net of depreciation 92.000 Total aasta $227,090 Liabilities and shareholders' Equity Accounts payable $43.000 Common shares 66.000 Retained warnings 113,000 Total llanilities and shareholders' equity 5227.000 BOOK June $ 125,000 Budgeted the statements Sales Cost of goods sold Cross margin Selling and administrative expenses Operating income April $ 110,000 66,000 44,000 15.000 $ 29,000 May $ 117,000 20.200 46,500 15.000 $31.800 19,200 20,000 29,200 Budgeting Assumptions: Operating Income $ 29,000 $31.500 $ 29,200 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 $126,000. 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 d. Each month's ending merchandise inventory should equal $14.000 plus 50% of the next month's cost of goods sold e Depreciation expense is $1,000 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.) Complete this question by entering your answers in the tabs below. Required Required 2 Required Required 4 purch Hof 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 $14.000 plus 50% of the next month's cost of goods sold e. Depreciation expense is $1,000 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.) 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 He Required 2 > 6 Required 1 Required Required Required Prepare a budgeted balance sheet at June 30. (Hint: You need to calculate the cash paid for setting and administrative expenses during April May, and June to determine the cash balance in your June 30 balance sheet) 15 points Deacon Company Balance Sheet June 30 Assets woo Total assets Liabilities and Shareholders' Equity Total abilities and stockholders equity