The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2020. 1. 2. Sales for May are expected to be $960,000. Sales in June and July are expected to be 5% higher than the preceding month. Cost of goods sold is expected to be 75% of sales. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. Operating expenses are estimated to be as follows: 3. 4. Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurance $31,800 per month 6 % of monthly sales 2 % of monthly sales 5 % of monthly sales $5,510 per month $830 per month $620 per month $600 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. Your answer is correct. Prepare the merchandise purchases budget for each month in columnar form. SUPPAR COMPANY San Miguel Store Merchandise Purchases Budget For the Months of May and June, 2020 May June Budgeted Cost of Goods Sold $ 720000 $ 756000 Add : Desired Ending Merchandise Inventory 75600 79380 Total 795600 835380 Less : Beginning Merchandise Inventory -72000 i -75600 i Required Merchandise Purchases $ $ 723600 $ 759780 Prepare budgeted multiple-step income statements for each month in columnar form. Show in the statements the detai cost of goods sold. SUPPAR COMPANY San Miguel Store Budgeted Income Statement May June Sales $ $ $ $ Cost of Goods Sold Gross Profit Operating Expenses Sales Salaries Add 4: Advertising Delivery Sales Commissions . Rent Depreciation Utilities Insurance Interest Expense Total Operating Expenses Income Before Income Taxes Interest Expense Income Tax Expense Income from Operations + $ $ eTextbook and Media Save for Later Attempts: 1 of 5 used Submit Answer Delivery Cost of Goods Sold Depreciation Ending Inventory Advertising Total Operating Expenses Utilities Purchases Cost of Goods Available for Sale Income from Operations Sales Commissions Insurance Rent Interest Expense Sales Sales Salaries Beginning Inventory Income Tax Expense Operating Expenses Gross Profit Net Income /(Loss) Income Before Income Taxes