In addition, the gross profit rate is 40% and the desired inventory level is 30% of nt cost of sales. Required: Prepare a purchases budget for April through June. 11 Christy Enterprises reports the year-end information from 2011 as follows Sales (100,000 units) $500,000 Less: Cost of goods sold 300,000 Gross profit 200,000 Operating expenses (includes $20,000 of Depreciation)120,000 Net income $80,000 twisty is developing the 2012 budget. In 2012 the company would like to incl. prices by 10%, and as a result expects a decrease in sales volume of 5%. Cost percentage of sales is expected to increase to 62%. Other than depreciation, a fists are variable. Required: Prepare a budgeted income statement for 2012