but 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:

budgeted unit sales:

quarter 1: 35,000

quarter 2: 55,000

quarter 3: 27,500

quarter 4: 55,000

each T-shirt is expected to sell for $10

The purchasing manager buys the T-shirts for $4 each

The company needs to have enough T-shirts on hand at the end of each quarter to fill 20% of the next quarter sales demand

selling and administrative expenses are budgeted at $70,000 per quarter plus 12% of total sales revenue

Required:

1A. Determined budgeted sales revenue for each quarter

Quarter 1: ___

Quarter 2: ___

Quarter 3: ___

1B. determine budgeted cost of merchandise purchased for each quarter

Quarter 1: ___

Quarter 2: ___

Quarter 3: ___

1C. determine the budgeted cost of good sold for each quarter

Quarter 1: ___

Quarter 2: ___

Quarter 3: ___

1D. determine selling and administrative expenses for each quarter.

Quarter 1: ___

Quarter 2: ___

Quarter 3: ___

1E. 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