P9.5 (LO 5), AP The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022. Sales for May are expected to be $800,000. 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: Sales salaries Advertising Delivery expense" Sales commissions *** Rent expense Depreciation Utilities $35,000 per month 6% of monthly sales 2% of monthly sales 5% of monthly sales $5,000 per month $ $800 per month $600 per month $500 per month Insurance Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes. Instructions Complete the merchandise purchases budget given below SUPPAR COMPANY San Miguel Store Merchandise Purchases Budget For the Months of May and June, 2022 May June Budgeted cost of goods sold Desired ending merchandise inventory Total Beginning merchandise inventory Required merchandise purchases Complete the budgeted multiple-step income statements, given below, for each month SUPPAR COMPANY San Miguel Store Budgeted Income Statement FILLER...dl... AAAA Complete the budgeted multiple-step income statements, given below, for each month SUPPAR COMPANY San Miguel Store Budgeted Income Statement For the Months of May and June, 2022 May June Sales Cost of goods sold Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit Operating expenses Sales salaries Advertising* Delivery** Sales commissions*** Rent Depreciation Utilities Insurance Total Income from operations Interest expense Income before income taxes Income tax expense (20%) Net income