Item$33\mathrm{.}33$points ItemSkipped eBook Print References Check my workCheck My Work button is now enabled Item $3$ Deacon Company is a merchandising company that is preparing a budget for the three$-$month period ended June $30$th$.$ The following information is available $$ Deacon Company Balance Sheet March $31$Assets$$Cash$ $58,600$Accounts receivable$33,200$Inventory$40,000$Buildings and equipment, net of depreciation$142,000$Total assets$ $273,800$Liabilities and Stockholders$$ Equity$$Accounts payable$ $69,200$Common stock$70,000$Retained earnings$134,600$Total liabilities and stockholders$$ equity$$273,800$ Budgeted Income StatementsAprilMayJuneSales$ $100,000$$ $110,000$$ $130,000$Cost of goods sold$60,00066,00078,000$Gross margin$40,00044,00052,000$Selling and administrative expenses$22,10023,60026,600$Net operating income$ $17,900$$ $20,400$$ $25,400$ Budgeting Assumptions: $60\%$ 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. Budgeted sales for July are $$140,000.10\%$ of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining $90\%$ of purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase. The accounts payable at March $31$ will be paid in April. Each month$$s ending merchandise inventory should equal $$10,000$ plus $50\%$ of the next month$$s cost of goods sold. Depreciation expense is $$1,250$ per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. $$ 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 $30$th$.($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 $30$th balance sheet.$)$