CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 9-5A (Part Level Submission) (Video) 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 $1,200,000. 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. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. 3. 4. Operating expenses are estimated to be as follows: Sales salaries $30,000 per month Advertising 6% of monthly sales Delivery expense 2 % of monthly sales Sales commissions 5 % of monthly sales Rent expense $5,390 per month $910 Depreciation per month $710 Utilities per month $560 per month Insurance SUL Interest expense is $2,000 per month. Income taxes are estimated to be 30 % of income 5. before income taxes. (a) 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 # R 9 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 1,200,000 Add Desired Ending Merchandise Inventory udy Total Less # Beginning Merchandise Inventory Required Merchandise Purchases Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER (b)