The budget committee of Lily Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June $2025.1.$ Sales for May are expected to be $$1,120,000.$ Sales in June and July are expected to be $5\%$ higher than the preceding month. $2.$ Cost of goods sold is expected to be $75\%$ of sales. $3.$ Company policy is to maintain ending merchandise inventory at $10\%$ of the following month's cost of goods sold. $4.$ Operating expenses are estimated to be as follows: $5.$ Interest expense is $$2,000$ per month. Income taxes are estimated to be $20\%$ of income before income taxes: $($a$)$ Sales salaries $$30,100$ per month Advertising $6\%$ of monthly sales Delivery expense $2\%$ of monthlysales Sales commissions $5\%$ of monthlysales Rent expense $$5\mathrm{.}390$ per month Depreciation $5900$ per month Utilities $$660$ per month: Insurance $$510$ per month