In September 2015, the budget committee of Ahmad Company assembles the following data:

1.   Expected Sales

              October                                                       $900,000

              November                                                     850,000

              December                                                     800,000

2.   Cost of goods sold is expected to be 60% of sales.

3.   Desired ending merchandise inventory is 20% of the next month's cost of goods sold.

4.   The beginning inventory at October 1 will be the desired amount.

Required:

Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule.