E8-20 (Algo) Preparing a Merchandise Purchases Budget and a Budgeted Income Statement (LO 8-3h, 8-5) 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 $310.000. $280,000, $400,000, and $180.000, respectively. 2. Cost of goods sold is 50 percent of expected sales. 3. CGC's desired ending inventory is 40 percent of the following month's cost of goods soid. 4. Monthly operating expenses are estimated to be Salaries: $39.000 Delivery expense: 8 percent of monthly sales Rent expense on the warehouse: $9,000 Utilities. $1,800 Insurance $240 Other expenses: $340 Required: 1. Compute the budgeted cost of purchases for each month in the second quarter 2. Complete the budgeted Income statement for each month in the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the budgeted cost of purchases for each month in the second quarter. April June May Total cost of budgeted purchases Required 1 Required 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 Budgeted Sales Revenue Budgeted Cost of Goods Sold June 30 Budgeted Gross Margin Budgeted Selling and Administrative Expenses Budgeted Net Operating Income