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 $473,000; July $642,000.
2.		Cost of goods sold is expected to be 75% of sales.
3.		Desired ending merchandise inventory is 30% of the following months 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
Gross ProfitIncome Tax ExpenseIncome Before Income TaxesCost of Goods Available for SaleNet Income / (Loss)SalesInventory, June 30PurchasesSelling and Administrative ExpensesInventory, June 1Cost of Goods Sold				$
Cost of Goods SoldInventory, June 1PurchasesSelling and Administrative ExpensesNet Income / (Loss)>Inventory, June 30SalesCost of Goods Available for SaleIncome Tax ExpenseIncome Before Income TaxesGross Profit
Inventory, June 1Cost of Goods Available for SaleInventory, June 30Income Tax ExpenseSalesGross ProfitPurchasesIncome Before Income TaxesCost of Goods SoldNet Income / (Loss)>Selling and Administrative Expenses		$
AddLess: Gross ProfitSalesInventory, June 30Net Income / (Loss)>Income Tax ExpensePurchasesInventory, June 1Selling and Administrative ExpensesIncome Before Income TaxesCost of Goods Available for SaleCost of Goods Sold
Cost of Goods SoldIncome Tax ExpenseInventory, June 30Gross ProfitInventory, June 1SalesIncome Before Income TaxesSelling and Administrative ExpensesNet Income / (Loss)>Cost of Goods Available for SalePurchases
AddLess: Cost of Goods SoldSalesSelling and Administrative ExpensesInventory, June 1Gross ProfitNet Income / (Loss)>Cost of Goods Available for SaleIncome Tax ExpenseIncome Before Income TaxesInventory, June 30Purchases
Inventory, June 1Gross ProfitIncome Before Income TaxesPurchasesCost of Goods SoldNet Income / (Loss)>SalesSelling and Administrative ExpensesInventory, June 30Cost of Goods Available for SaleIncome Tax Expense
Cost of Goods Available for SaleCost of Goods SoldSelling and Administrative ExpensesNet Income / (Loss)>SalesGross ProfitIncome Before Income TaxesInventory, June 1Inventory, June 30Income Tax ExpensePurchases				$