A B D E E F F G G H J L 1 P9.5 (LO 5), AP The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022. 2 3 Sales for May are expected to be $800,000. Sales in June and July are expected to be 5% higher than the preceding month. 4 Cost goods sold is expected to be 75% of sales. 5 Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. 6 Operating expenses are estimated to be as follows: 7 8 Sales salaries $35,000 per month 9 Advertising 6% of monthly sales 10 Delivery expense ** 2% of monthly sales 11 Sales commissions *** 5% of monthly sales 12 Rent expense $5,000 per month 13 Depreciation $800 per month 14 Utilities $600 per month 15 Insurance $500 per month 16 17 Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes. 18 19 Instructions 20 21 Complete the merchandise purchases budget given below 22 SUPPAR COMPANY 23 San Miguel Store 24 Merchandise Purchases Budget 25 For the Months of May and June, 2022 26 27 May June 28 29 Budgeted cost of goods sold Desired ending merchandise 30 inventory 31 Total 32 Beginning merchandise inventory Required merchandise purchases 33 34 35 B C D 35 36 37 Complete the budgeted multiple-step income statements, given below, for each month 38 39 SUPPAR COMPANY San Miguel Store Budgeted Income Statement 42 For the Months of May and June, 2022 43 44 May June 40 41 45 46 Sales 47 Cost of goods sold 48 Beginning inventory 49 Purchases 50 Cost of goods available for sale 51 Less: Ending inventory 52 Cost of goods sold 53 Gross profit 54 Operating expenses 55 Sales salaries 56 Advertising* 57 Delivery** 58 Sales commissions*** 59 Rent 60 Depreciation 61 Utilities 62 Insurance 63 Total 64 Income from operations 65 Interest expense 66 Income before income taxes 67 Income tax expense (20%) 68 Net income 69 70 71 72