Data table - October sales were $280,000. - Sales are projected to go up by 10% in November (from the October sales) and another 25% in December (from the November sales) and then return to the October level in January. - 25% of sales are made in cash, while the remaining 75% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 2% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. Data table - Stewart Corner Shoppe's gross profit is 20% of its sales revenue. - For the next several months, the store wants to maintain an ending merchandise inventory equal to $16,000+10% of the next month's cost of goods sold. The September 30 inventory was $38,400. - Expected monthly operating expenses include: - Wages of store workers are $8,700 per month - Utilities expense of $800 in November and $2,100 in December - Property tax expense of $1,900 per month Data table - Expected monthly operating expenses include: - Wages of store workers are $8,700 per month - Utilities expense of $800 in November and $2,100 in December - Property tax expense of $1,900 per month - Property and liability insurance expense of $700 per month - Depreciation expense of $5,500 per month - Transaction fees, as stated above, are 2% of credit and debit card sales Requirements Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement Stewart Corner Shoppe Cost of Goods Sold, Inventory, and Purchases Budget Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases \begin{tabular}{r|r|} \multicolumn{1}{c}{ November } & \multicolumn{1}{c}{ December } \\ \hline 193200 & 241500 \\ \hline 40150 & 34400 \\ \hline 233350 & 275900 \\ \hline 35320 & 40150 \\ \hline 198030 & 235750 \\ \hline & \\ \hline \end{tabular}