Problem $3$: Budgeting $(10$ pts$)$

$\backslash$table$[[\backslash$table$[[$Deacon Company$],[$Balance Sheet$],[$March $31]],,,,,],[$Assets$,,,,,],[$Cash$,$$$55,000,,,,],[$Accounts receivable,$36,000,,,,],[$Inventory$,40,000,$Budgeted Income Statements,,,$],[$Buildings and equipment, net of depreciation,$100,000,,$April,May,June$],[$Total assets,$$231,{000}_{?},$Sales,$$100,000,$$$110,000,$$$130,000$

dgeting 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 $$160,000.$

$10\%$ 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 $$1,850$ per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.