In May $2022,$ the budget committee of Bonita Stores assembles the following data for preparing the merchandise purchases budget for the month of June:

$1.$ Expected sales: June $$548,000$; July $$560,000.$

$2.$ Cost of goods sold is expected to be $75\%$ of sales.

$3.$ Desired ending merchandise inventory is $30\%$ of the following month's cost of goods sold.

$4.$ The beginning inventory at June $1$ will be the desired amount.

$($a$)$ Calculate the budgeted merchandise purchases for June.

Answer: Budgeted merchandise purchases: $$413,700$

$($b$)$ Prepare the budgeted income statement for June through gross profit on sales.

BONITA STORES

Budgeted Income Statement

For the Month Ending June $30,2022$