9 PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5) 5 points 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: Quarter 1 46,080 Budgeted unit sales Quarter 2 72,800 Quarter 3 36, eee Quarter 4 72,000 eBook Print Each T-shirt is expected to sell for $21. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 31 percent of the next quarter's sales demand. . Selling and administrative expenses are budgeted at $92,000 per quarter plus 20 percent of total sales revenue. References 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 Complete the budgeted income statement for each quarter. RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Budgeted Sales Revenue Budgeted Cost of Goods Sold Quarter 2 Quarter 3 Budgeted Gross Margin Budgeted Selling and Administrative Expenses Budgeted Net Operating Income