P23-1A Representatives of the various departments of Software Direct have assembled the following data. As the business manager, you must prepare the budgeted income statements for August and September 20X3.

a. Sales in July were $184,000. You forecast that monthly sales will increase 2% in August and 2% in September.

b. Software Direct tries to maintain inventory of $50,000 plus 20% of sales budgeted for the following month. Monthly purchases average 60% of sales. Actual inventory on July 31 is $80,000. Sales budgeted for October are $198,000.

c. Monthly salaries amount to $15.000. Sales commissions equal 6% of sales. Combine salaries and commissions into a single figure.

d. Other monthly expenses are Rent expense Depreciation expense. Insurance expense Income tax. $14.000, paid as incurred $ 3.000 $ 1.000. expiration of prepaid amount 30% of operating income Prepare Software Direct's budgeted income statements for August and September. Show cost-of-goods sold computations. Round all amounts to the nearest $1.000. For example. budgeted August sales are $188.000 ($184,000 x 1.02) and September sales are $192,000 ($188,000 x 1.02).