InstructionsSales salaries$30,000Advertising6%Delivery...

Instructions

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Instructions 1.  Sales for May are expected to be $800,000; sales in June and July are expected to be 5% higher than the preceding month. 2.  The cost of goods sold is expected to be 75% of sales 3.  Company policy is to maintain ending merchandise inventory at 15% of the following month’s cost of goods sold. 4.  Operating expenses are estimated to be: Sales salaries $30,000 Advertising 6% Delivery expense 3% Sales commissions 5% Rent expense $5,000 Depreciation $800 Utilities $600 Insurance $500 5.  Income taxes are estimated to be 30% of income from operations. Tasks: Prepare the merchandise purchases budget for each month in columnar form. LITWIN COMPANY San Miguel Store Merchandise Purchases Budget For the Months of May and June, 2014 May June Title Amount Amount Title Amount Amount Title Formula Formula Title Amount Amount Title Formula Formula Prepare budgeted income statements for each month in columnar form. Show in the statements the details of cost of goods sold. LITWIN COMPANY San Miguel Store Budgeted Income Statement For the Months of May and June, 2014 May June Title Amount Amount Title Title Amount Amount Title Amount Amount Title Formula Formula Title Amount Amount Title Formula Formula Title Formula Formula Title Title Amount Amount Title Formula Formula Title Formula Formula Title Formula Formula Title Amount Amount Title Amount Amount Title Amount Amount Title Amount Amount Title Formula Formula Title Formula Formula Title Formula Formula Title Formula Formula Submission Details: Name your worksheet SU_ACC6345_W2_MW_LastName_FirstInitial.xlsx. Submit your completed workbook to the W2 Midweek Assignment Submissions Area by the due date assigned. Grading Criteria Maximum Points Prepared the merchandise purchases budget. 20 Prepared the budgeted income statement for each month. 10 Integrated the statements the details of cost of goods sold. 10 Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources (i.e., APA); and displayed accurate spelling, grammar, and punctuation. 10 Total: 50