need help with part (b). drop down options on the left may be incorrect

The budget committee of Waterway Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2025 1. Sales for May are expected to be $1,360,000. 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: 5. Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes. Prepare the merchandise purchases budget for each month in columnar form. (b) Prepare budgeted multiple-step income statements for each month in columnar form. Show in the statements the details of cost of goods sold. WATERWAY COMPANY San Miguel Store Budgeted Income Statement For the Months of May and June, 2025 1.17/3= Sales Cost of Goods Sold Beginning Inventory Purchases Cost of Goods Available for Sale Less V: Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Operating Expenses Sales Salaries Advertising Delivery Sales Commissions Rent Depreciation Utilities Insurance Total Operating Expenses Income from Operations Interest Expense Income Before Income Taxes Income Tax Eqpense Net Income / (Loss)