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Deacon Company is a merchandising company that is preparing a budget for the three month period ended June 30th. The following information is available Sook Deacon Company Balance Sheet March 31 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 55,400 41,200 53,200 180.000 5329,500 $ 143,500 70,000 116,300 $ 329,800 rences Budgeted Income Statements April Sales $144,000 Cost of goods sold 86,400 Gross margin 57,600 Selling and administrative expenses 20,300 Net operating income $ 37,300 May $154,000 92,400 61,600 21,300 $ 39,800 June $174,000 104,400 69,600 24,800 $ 44,500 Budgeting Assumptions: a 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. b. Budgeted sales for July are $184,000. 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. The accounts payable at March 31 will be paid in April d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold e Depreciation expenses $1750 per month. All other selling and administrative expenses are paid in full in the month the expenses Ir curred Required: 1 Calculate the expected cash collections for April, May, and June 2. Calculate the budgeted merchandise purchases for April May, and June Sales $144,000 Cost of goods sold 86,400 Gross margin 57,600 Selling and administrative expenses 20,300 Net operating income $ 37,300 $154,000 92,400 61,600 21,800 $ 39,800 5174,000 104,400 69,600 24,860 $44,800 Budgeting Assumptions: a. 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. b. Budgeted sales for July are $184,000. 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. The accounts payable at March 31 will be paid in April. d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold. e Depreciation expense is $1750 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 30th. (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 30th 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 Required 2 > Sales $144,000 Cost of goods sold 86,400 Gross margin 57,600 Selling and administrative expenses_20,300 Net operating income $ 37,300 $154,000 92,400 61,600 21,800 $ 39,800 5174,000 104,400 69,600 24,00 $ 46,00 Budgeting Assumptions a. 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 b. Budgeted sales for July are $184,000 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. The accounts payable at March 31 will be paid in April d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold. e Depreciation expense is $1750 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 30th (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 30th balance sheet) Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 Calculate the budgeted merchandise purchases for April, May, and June April May June Total Budgeted merchandise purchases Sales $144,000 Cost of goods sold 86,400 Gross margin 57,600 Selling and administrative expenses 20,300 Net operating income $ 37,300 $154,00 92,400 61,600 $174,000 104,400 69,600 24.800 $ 44,800 $ 39,800 Budgeting Assumptions a. 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 b. Budgeted sales for July are $184,000 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. The accounts payable at March 31 will be paid in April d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold. e Depreciation expense is $1750 per month All other selling and administrative expenses are paid in full in the month the expense is es 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 30th. (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 30th 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 disbursements for merchandise purchases for April, May, and June. Apill May June Quarter Budgeted cash disbursements for merchandise purchases d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold e. Depreciation expense is $1750 per month. All other selling and administrative expenses are paid in full in the month 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 30th. (Hint You need to calculate the cash paid for selling and administra during April, May, and June to determine the cash balance in your June 30th balance sheet) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a budgeted balance sheet at June 30th. (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 30th balance sheet.) Deacon Company Balance Sheet June 30 Assets Total assets s 0 Liabilities and Stockholders' Equity Total liabilities and stockholders equity $ Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold 0 0 0 Selling and administrative expenses 0 0 0 2 1. Complete the schedule of expected cash collections 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements form 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30, 10 Doints Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Required 4 Required's Prepare a balance sheet as of June 30. Print References Shilow Company Balance Sheet June 30 Assets Current assets Total current assets 0 Total assets $ Liabilities and Stockholders' Equity Stockholders' equity 0 Total liabilities and stockholders' equity 5 0 3 Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia Three cubic centimeters (CC) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw material needs for the third quarter , the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 2.000 units of Supermix plus 20% of the niext month's b. The raw materials inventory on hand at the end of each month must equal one half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 66,000 cc of solvent H300. c. The company maintains no work in process inventories 00 int A monthly sales budget for Supermix for the third and fourth quarters of the year follows ences July August September October November December Budgeted Unit Sales 43,000 48,000 58,000 38,000 28,000 18.000 Required: 1. Prepare a production budget for Supermix for the months July August September, and October 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a production budget for Supermix for the months July August September and October Pearl Products Limited Production Budget July August September October Budgeted unit sales Prey 3 of 3 Nox raw materials. The raw materials inventory on June 30 is budgeted to be 66.000 cc of solvent H300 c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted July August September October November December Unit Sales 43,000 48,000 58,000 38,000 28.000 18,000 Required: 1. Prepare a production budget for Supermix for the months July August September, and October 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September and for the quarter in total Complete this question by entering your answers in the tabs below. Required 1 Required Prepare a production budget for Supermix for the months July, August September, and October Pearl Products Limited Production Budget July August September October Budgeted unit salon Total needs Required production in unito * Red Required 3 > 3 raw materials. The raw materials inventory on June 30 is budgeted to be 66,000 cc of solvent H300, c The company maintains no work in process inventores A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted Unit Sales July 43,000 August 48,000 September 58,000 October 35,000 November 28,000 December 18,000 Required: 1. Prepare a production budget for Supermix for the months July August, September, and October 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July August, and September, and for the quarter in total ances Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. Pearl Products Limited Direct Materials Budget July August September Third Quarter Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production CC co Total units of raw materials needed Units of raw materials to be purchased

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