P23- 5A

a)
Suppar Company
San Miguel Store
Merchandise Purchase Budget
For the Months of May and June 2017
May
Budgeted Cost of Goods sold *600000
Add: Desired Ending Investory 63000
Total 663,000
Less: Beginning Inventory 60,000
Required Merchandise Inventory 603,000

b)
Suppar Company
San Miguel Store
Budgeted Income Statement
For the Months of May and June 2017
May
Sales Revenue 800,000
Cost of Goods Sold
Beginning Inventory 60,000
Add: Purchase 603,000
Less: Ending Inventory 63,000
Cost of Goods Sold 600,000

Gross Profit *200,000

Operating Expense
Sales Salaries Expense 35,000
Advertising Expense (6% of Sales Revenue) 48,000
Delivery Expense (2% of Sales Revenue) 16,000
Sales Commissions (5% of Sales) 40,000
Rent Expense 5,000
Depreciations Expense 800
Utilities Expense 600
Insurance Expense 500
Total Operating Expense 145,900

Income from Operation 54,100

Less: Interest Expense 2,000
Income Before Income Tax 52,100
Less: Income Tax Expense (30% of Income) 15,630
Net Income 36,470
 * 800,000 x 75% = 600,000
**600,000 x 105% = 630,000
June *** 630000 x 105% x 10% =66150
**630000
***66150
696,150
63,000 <------ 10% of the Cost of Goods Sold
633,150

June
840,000 800,000 x 105%

63,000
633,150
66,150 *800,000 - 600,000
630,000

210,000

35,000
50,400
16,800
42,000
5,000
800
600
500
151,100

58,900
2,000
56,900
17,070
39,830