P23-1B The budget committee of Morton Restaurant Supply Co. has assembled the follow- ing data. As the business manager, you must prepare the budgeted income statements for May and June 20X2.

a. Sales in April were $31.300. You forecast that monthly sales will increase 2.4% in May and 2.4% in June.

b. Morton maintains inventory of $9,000 plus 25% of sales budgeted for the following month. Monthly purchases average 55% of sales. Actual inventory on April 30 is $14.000. Sales budgeted for July are $42.400.

c. Monthly salaries amount to $4,000. Sales commissions equal 4% of sales. Combine salaries and commissions into a single figure.

d. Other monthly expenses are Rent expense Depreciation expense. Insurance expense Income tax $3,200. paid as incurred $ 500 $ 200, expiration of prepaid amount 20% of operating income Prepare Morton's budgeted income statements for May and June. Show cost-of-goods- sold computations. Round all amounts to the nearest $100. For example, budgeted May sales are $32,100 ($31.300 x 1.024), and June sales are $32.900 ($32.100 x 1.024).