10. 1.00 points Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $220,000, $190,000, $310,000, and $90,000, respectively. 2. Cost of goods sold is 30 percent of expected sales. 3. CGC's desired ending inventory is 20 percent of the following month's cost of goods sold. 4. Monthly operating expenses are estimated to be Salaries: $30,000 Delivery expense: 4 percent of monthly sales Rent expense on the warehouse: $4,500 Utilities: 5800 Insurance: $175 Other expenses: $260 Required: 1. Compute the budgeted cost of purchases for each month in the second quarter. April May June 164,000 $ 156,000 Total Cost of Budgeted Purchases $ 149,000 $ 2. Complete the budgeted income statement for each month in the second quarter. CITRUS GIRL COMPANY Budgeted Income Statement For the Month Ending April 30 May 31 June 30 Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Gross Margin Budgeted Interest Expense Budgeted Net Operating Income