1 The budget committee of Sunland Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022 Sales for May are expected to be $960,000. Sales in June and July are expected to be 5% higher than the preceding month. Cost of goods sold is expected to be 75% of sales. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. Operating expenses are estimated to be as follows: 2. 3. 4. $31,800 per month 6% of monthly sales Sales salaries Advertising Delivery expense Sales commissions Rent expense 2 % of monthly sales 5% of monthly sales $5,510 per month Depreciation $830 per month Utilities $620 per month Sales salaries $31,800 per month Advertising 6 % of monthly sales Delivery expense 2% of monthly sales Sales commissions 5% of monthly sales Rent expense $5,510 per month Depreciation $830 per month Utilities $620 per month Insurance $600 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes. SUPPAR COMPANY San Miguel Store Merchandise Purchases Budget May ARE SUPPAR COMPANY San Miguel Store Budgeted Income Statement May June