The budget committee of Suppar Company col lects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2020. 1. Sales for May are expected to be $800,000. Sales i n 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% ofthe fol lowing month's cost of goods sold. 4. Operating expenses are estimated to be as follows: Sales salaries $35,000 per month Advertising 6 % of monthly sales Delivery expense 2 % of monthly sales Sales commissions 5 % of monthly sales Rent expense $5.000 per month Depreciation $300 per month Utilities $600 per month Insurance $500 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. (b) Prepare budgeted multiple-step income statements for each month in columnar form. Show in the statements the details of cost of goods sold. SUPPAR COMPANY San Miguel Store Budgeted Income Statement May June S S