PAB 6 Preparing Operating Budgets for a Merchandising Firm (LO 8-5, 8-30, Red Canyon Tahir Comary operates a chain of Tart shops in the southwesom United States. The sales manager has provided sale Forecast for the coming you, song with the following formation Q U23 50.000 29,500 Quarter 4 thuisgeiled Unte Each T-shirt is expected to sell for $14 The purchasing manager buys the T-shirts for 56ach. . The company needs to have enough T-shirts on hand at the end of each quarter to 24 percent of the next quarter's sales demand . Suling and administrative expenses are budgeted at $78,000 per quarter plus 16 percent of total revenue Required 1. Delamine budgeted sales revenue for each quarter Quarter Quarter 1 Budgeted Sales Revue 2. Dum budgeted cont of merchandise purchased for each quarter, Quarte 2 Quarter Despered Cast of Merchandise Purchased Damne budgeted out of good sold for each quarter 3. Determine budgeted cost of good sold for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Goods Sold 4. Determine selling and administrative expenses for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Selling and Administrative Expenses 5. Complete the budgeted income statement for each quarter. RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 Budgeted Gross Margin Budgeted Net Operating Income