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Brownsville Novelty Store prepared the following budget information for the month of May:
Sales are budgeted at $360,000.
All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.
Inventory was $84,000 on April 30; an inventory increase of $12,000 is planned for May 31.
All inventory is marked to sell at cost plus 50 percent.
Estimated expense for selling and administrative expenses for the month are $48,000.
Depreciation for May is projected at $6,000.
Problem 1: Brownsville's budgeted operating income for May is
Prepare an income statement for the year 2001 and a balance sheet as of December 31, 20x1.
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