The following data are for the operations of Zo's Fashion Footwear Ltd., a retail store: 1. Sales

Question:

The following data are for the operations of Zoë's Fashion Footwear Ltd., a retail store:
1. Sales Forecast-2012
April ................... $ 70,000
May ...................... 60,000
June ...................... 80,000
July ..................... 100,000
August ................. 120,000
2. The cost of sales is 40% of sales. Other variable costs are 20% of sales.
3. Inventory is maintained at twice the budgeted sales requirements for the following month.
4. Fixed costs are $20,000 per month.
5. The income tax rate is estimated to be 40%.
Instructions
(a) Prepare a merchandise purchases budget in dollars for June 2012.
(b) Prepare a budgeted income statement for June 2012?