or The budget committee of Hilton Fashions, an upscale women's clothing retailer, has as sembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. a. Sales in April were $50,000. You forecast that monthly sales will increase 8% in May b. Hilton Fashions maintains inventory of $11,000 plus 20% of sales revenues budgeted for the following month. Monthly purchases average 50% of sales revenues in that same month. Actual inventory on April 30 is $21,800. Sales budgeted for July are $55,000. c. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are as follows: Rent expense Depreciation expense Insurance expense... Income tax ***** $3,200, paid as incurred $500 $300, expiration of prepaid amount 20% of operating income Requirement Prepare Hilton Fashions' budgeted income statements for May and June. Show cost of goods sold computations.

The budget committee of Hilton Fashions, an upscale women's clothing retailer, has as. sembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. a. Sales in April were $50,000. You forecast that monthly sales will increase 8% in Mayay and an additional 4% in June. b. Hilton Fashions maintains inventory of $11,000 plus 20% of sales revenues budgeted for the following month. Monthly purchases average 50% of sales revenues in that same month. Actual inventory on April 30 is $21,800. Sales budgeted for July are $55,000. c. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are as follows: Requirement Prepare Hilton Fashions' budgeted income statements for May and June. Show cost of goods sold computations