The following data are for the operations of Zoë's Fashion Footwear Ltd., a retail store: 1. SalesForecast-2016
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 2016.
(b) Prepare a budgeted income statement for June 2016.