In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June:

1.Expected sales: June $470,000; July $601,000.2.Cost of goods sold is expected to be75% of sales.3.Desired ending merchandise inventory is30% of the following month's cost of goods sold.4.The beginning inventory at June 1 will be the desired amount.

Calculate the budgeted merchandise purchases for June.

Budgeted merchandise purchases$

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Prepare the budgeted income statement for June through gross profit on sales.

BIG JIM STORES

Budgeted Income Statement

For the Month Ending June 30, 2020