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. Sales for May are expected to be $1,280,000. 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: $31,500 Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurancee 6 % 2 % 5% per month of monthly sales of monthly sales of monthly sales $5,210 per month $810 per month $650 per month $520 pe month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. Prepare the merchandise purchases budget for each month in columnar form. SUPPAR COMPANY San Miguel Store Merchandise Purchases Budget For the Months of May and June, 2020 May June Budgeted Cost of Goods Sold 60000$ 1008000 Add Desired Ending Merchandise Inventory 100800 105840 Total 1060800 1113840 Less : | Beginning Merchandise Inventory 96000 100800 1 Required Merchandise Purchases 64800$ 1013040 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