In May $2022,$ the budget committee of Blue Spruce, Inc. assembles the following data in preparation of budgeted merchandise

purchases for the month of June.

Expected sales: June $$725,000,$ July $$970,000.$

Cost of goods sold is expected to be $80\%$ of sales.

Desired ending merchandise inventory is $30\%$ of the following month's cost of goods sold.

The beginning inventory at June $1$ will be the desired amount.

$($b$)$

Prepare the budgeted income statement for June through gross profit.

BLUE SPRUCE, INC.

Budgeted Income Statement