Connect Assignment (Worth 5% of Final Grade) i Saved Deacon Company is a merchandising company that...

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Connect Assignment (Worth 5% of Final Grade) i Saved 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 $ 51,000 35,000 32,000 110,000 $228,000 $ 43,000 60,000 125,000 $228,000 Budgeted Income Statements April Sales $ 91,000 May $ 116,000 June $ 125,000 Cost of goods sold 54,600 69,600 75,000 Gross margin 36,400 46,400 50,000 Selling and administrative expenses 15,000 16,000 16,000 Operating income $ 21,400 30,400 5 34,000 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 $133,000 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 $11,000 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 < Prev 6 of 6 Connect Assignment (Worth 5% of Final Grade) i Saved 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 $ 51,000 35,000 32,000 110,000 $228,000 $ 43,000 60,000 125,000 $228,000 Budgeted Income Statements April Sales $ 91,000 May $ 116,000 June $ 125,000 Cost of goods sold 54,600 69,600 75,000 Gross margin 36,400 46,400 50,000 Selling and administrative expenses 15,000 16,000 16,000 Operating income $ 21,400 30,400 5 34,000 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 $133,000 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 $11,000 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 < Prev 6 of 6