a. prepare The merchandise purchases budget for each month in columnar form

b. prepare budget at multistep income statement for each month in columnar form. Show in the statements the details of cost of goods sold

The budget committee of Bramble Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022. 1 2 Sales for May are expected to be $1,120,000. 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: 3. 4. Sales salaries $28,400 per month Advertising Delivery expense Sales commissions Rent expense Depreciation 6 % of monthly sales 2 % of monthly sales 5 % of monthly sales $5,750 per month $820 per month Utilities $680 per month Insurance $550 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes