Problem 9-17 Schedules of Expected Cash Collections and Disbursements; Balance Sheet [LO2] Deacon Company is a merchandi

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Problem 9 17 Schedules Of Expected Cash Collections And Disbursements Balance Sheet Lo2 Deacon Company Is A Merchandi 1 (23.12 KiB) Viewed 10 times

Problem 9 17 Schedules Of Expected Cash Collections And Disbursements Balance Sheet Lo2 Deacon Company Is A Merchandi 2 (32.07 KiB) Viewed 10 times

Problem 9 17 Schedules Of Expected Cash Collections And Disbursements Balance Sheet Lo2 Deacon Company Is A Merchandi 3 (30.19 KiB) Viewed 10 times

Problem 9-17 Schedules of Expected Cash Collections and Disbursements; Balance Sheet [LO2] Deacon Company is a merchandising company that is preparing a budget for the second quarter of the calendar year. The following Information is available. Assets Cash Accounts receivable Inventory DEACON COMPANY Balance Sheet, March 31 Plant and equipment, net of depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total liabilities and shareholders equity Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income April $ 110,000 $ 60,000 44,000 15,000 29,000 $ 64,000 20,000 43,000 12,000 $ 227,000 $ 43,000 66,000 118,000 $ 227,000 Play $ 117,000 70,200 46,800 15,000 $ 31,000 June $ 123,000 75,000 49,200 20,000 29,200 S Check my work
4 1 aces 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 $126,000 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 $14,000 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 3 Calculate the expected cash collections for April, May, and June April May June Required 1 Required 2 Required 4 Total cash collections Quarter Check my wak
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 3 Required 4 Calculate the expected cash collections for April, May, and June. April Required 1 Required 21 Total cash collections May < Required 1 June Quarter Required 2 >