Requirement 1. Prepare the sales budget for November and December. Data table - October sales were $220,000. - Sales are projected to go up by 15% in November (from the October sales) and another 30% in December (from the November sales) and then return to the October level in January. - 20% of sales are made in cash, while the remaining 80% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 5% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. - Karma Corner Shoppe's gross profit is 25% of its sales revenue. - For the next several months, the store wants to maintain an ending merchandise inventory equal to $20,000+20% of the next month's cost of goods sold. The September 30 inventory was $53,000. Cost of Goods Sold, Inventory, and Purchases Budget - Expected monthly operating expenses include: For the Months of November and December - Wages of store workers are $8,600 per month - Utilities expense of $1,800 in November and $1,600 in December - Property tax expense of $2,100 per month - Property and liability insurance expense of $600 per month - Depreciation expense of $7,000 per month - Transaction fees, as stated above, are 5% of credit and debit card sales Requirement 3. Prepare the operating expense budget for November and December. Karma Corner Shoppe - October sales were $220,000. - Sales are projected to go up by 15% in November (from the October sales) and another 30% in December (from the November sales) and then return to the October level in January. - 20% of sales are made in cash, while the remaining 80% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 5% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. - Karma Corner Shoppe's gross profit is 25% of its sales revenue. - For the next several months, the store wants to maintain an ending merchandise inventory equal to $20,000+20% of the next month's cost of goods sold. The September 30 inventory was $53,000. Requirement 4. Prepare the budgeted income statement for November and December. (Use the traditional format). - Expected monthly operating expenses include: - Wages of store workers are $8,600 per month - Utilities expense of $1,800 in November and $1,600 in December - Property tax expense of $2,100 per month - Property and liability insurance expense of $600 per month - Depreciation expense of $7,000 per month - Transaction fees, as stated above, are 5% of credit and debit card sales