The budget committee of Bramble Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022.

1.		Sales for May are expected to be $1,040,000. 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 months cost of goods sold.
4.		Operating expenses are estimated to be as follows:

Sales salaries		$31,600		per month
Advertising		6	%	of monthly sales
Delivery expense		2	%	of monthly sales
Sales commissions		5	%	of monthly sales
Rent expense		$5,910		per month
Depreciation		$880		per month
Utilities		$610		per month
Insurance		$520		per month

5. Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes. Prepare the merchandise purchases budget for each month in columnar form LILY COMPANY San Miguel Store Merchandise Purchases Budget May June Prepare budovted income statements for each month in columnar form, Show in the statements the details of cost of goods sold. (Round answers to decimal places 2,500) LITWIN COMPANY San Miguel Store Budgeted Income Statement For the Month of May and June, 2014 May June