Sarved Help Save & E Ches 6 PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm (LO 8-5) aints Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Book Budgeted unit sales Quarter 1 Quarter 2 Quarter Quarter 4 50,000 B0,000 40,000 80,000 Print References Each T-shirt is expected to sell for $25 The purchasing manager buys the T-shirts for $10 each The company needs to have enough T-shirts on hand at the end of each quarter to fill 35 percent of the next quarter's sales demand Selling and administrative expenses are budgeted at $100,000 per quarter plus 15 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for quarters 1, 2, and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2 and 3 3. Determine budgeted cost of good sold for quarters 1, 2, and 3 4. Determine selling and administrative expenses for quarters 1, 2, and 3 5. Complete the budgeted income statement for quarters 1, 2, and 3 4 Doints Required: 1. Determine budgeted sales revenue for quarters 1, 2 and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1.2 and 3. 3. Determine budgeted cost of good sold for quarters 1, 2 and 3. 4. Determine selling and administrative expenses for quarters 1, 2 and 3 5. Complete the budgeted income statement for quarters 1, 2 and 3. Paint Petreces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Reguired 5 Determine budgeted sales revenue for each quarter. Quarter 1 Quarter 2 Quarter Budgeted Sales Revenue Required 2 > Do per quarter plus 15 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for quarters 1, 2 and 3 2. Determine budgeted cost of merchandise purchased for quarters 1, 2 and 3. 3. Determine budgeted cost of good sold for quarters 1, 2, and 3. 4. Determine selling and administrative expenses for quarters 1, 2, and 3. 5. Complete the budgeted income statement for quarters 1, 2 and 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine budgeted cost of merchandise purchased for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Merchandise Purchased Required: 1. Determine budgeted sales revenue for quarters 1, 2, and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2, and 3. 3. Determine budgeted cost of good sold for quarters 1, 2 and 3. 4. Determine selling and administrative expenses for quarters 1, 2 and 3 5. Complete the budgeted income statement for quarters 1, 2 and 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine budgeted cost of good sold for each quarter. Quarter 1 Quarter 2 Budgeted Cost of Goods Sold Quarter 3 Required: 1. Determine budgeted sales revenue for quarters 1, 2, and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2, and 3. 3. Determine budgeted cost of good sold for quarters 1, 2, and 3. 4. Determine selling and administrative expenses for quarters 1, 2, and 3. 5. Complete the budgeted income statement for quarters 1, 2 and 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine selling and administrative expenses for each quarter. Quarter 1 Quarter 2 Budgeted Selling and Administrative Expenses Quarter 3 Check 6 1. Determine budgeted sales revenue for quarters 1.2 and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2, and 3. 3. Determine budgeted cost of good sold for quarters 1, 2 and 3. 4. Determine selling and administrative expenses for quarters 1.2 and 3. 5. Complete the budgeted income statement for quarters 1, 2 and 3. 4 paints Complete this question by entering your answers in the tabs below. Book Print Required 1 Required 2 Required 3 Required 4 Required References Complete the budgeted income statement for each quarter. RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter Budgeted Gross Marpin Budgeted Not Operating Income