Problem 13-5 The budget committee of Culver Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017 1. Sales for May are expected to be $802,000. Sales in June and July are expected to be 5% higher than the preceding month 2. Cost of goods sold is expected to be 75% of sales 3. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold 4. Operating expenses are estimated to be as follows: Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurance $31,600 per month 6 % of monthly sales 2 % of monthly sales 5 % of monthly sales $6,050 per month $900 per month $660 per month $580 per month Problem 13-5 The budget committee of Culver Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017 1. Sales for May are expected to be $802,000. Sales in June and July are expected to be 5% higher than the preceding month 2. Cost of goods sold is expected to be 75% of sales 3. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold 4. Operating expenses are estimated to be as follows: Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurance $31,600 per month 6 % of monthly sales 2 % of monthly sales 5 % of monthly sales $6,050 per month $900 per month $660 per month $580 per month