The budget committee of Suppar 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 $806,000. 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 30% of income before income taxes.

prepare budgeted multi-step income statements for each month in columnar form.

sales, cost of goods sold, beginning inventory, purchases, cost of goods available for sale, ending inventory, cost of goods sold, gross profit, operating expenses, total operting expenses, income from operations, interest expense, income before income tax expense, income tax expense, net income / loss