In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.

1.Expected sales: June $518,400, July $606,200.

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

3.Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold.

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

Prepare the budgeted multiple-step income statement for June through gross profit.

*Ensure to show steps on how figure was computed