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. 2 Expected sales: June $493,000; July $ 584,000. Cost of goods sold is expected to be 75% 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. 3 4. 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 Sales 488000 Cost of Goods Sold Purchases 390225 Add Inventory, June 1 110925 Cost of Goods Available for Sale 501150 Less Inventory, June 30 131400 Cost of Goods Sold 369750 Gross Pront 118250