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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 $ $57,600$

Accounts receivable $40,400$

Inventory $52,300$

Buildings and equipment, net of depreciation $173,000$

Total assets $ $323,300$

Liabilities and Stockholders$$ Equity

Accounts payable $ $115,400$

Common stock $70,000$

Retained earnings $137,900$

Total liabilities and stockholders$$ equity $ $323,300$

Budgeted Income Statements April May June

Sales $ $141,000$ $ $151,000$ $ $171,000$

Cost of goods sold $84,60090,600102,600$

Gross margin $56,40060,40068,400$

Selling and administrative expenses $21,10022,60025,600$

Net operating income $ $35,300$ $ $37,800$ $ $42,800$

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 $$181,000.$

$10\%$ 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 $$1,700$ 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.$)$

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