GROUP WORK #$2$

The CBA Regional Division of Union Corp. has been requested to prepare a quarterly budgeted income statement for $2020.$ The regional manager expects that sales in the first quarter of $2020$ will increase by $15\%$ over the same quarter of the preceding year and will then increase by $7\%$ for each succeeding quarter in $2020.$

The corporate head office has requested that the regional manager maintain an inventory in dollars equal to $25\%$ of the next quarter's sales. Quarterly purchases average $55\%$ of quarterly sales. Budgeted ending inventory on December $31,2019$ is $$176,000.$ Quarterly salaries are $$20,000$ plus $6\%$ of sales. All salaries are classified as sales salaries. Other quarterly expenses are estimated to be as follows:

$\backslash$table$[[$Rent expense,$$24,000$