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help PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5] Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern
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PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5] 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: - Each T-shirt is expected to sell for $22 - The purchasing manager buys the T-shirts for $9 each: - The company needs to have enough T-shirts on hand at the end of each quarter to fill 32 percent of the next quarter's sales demand. - Selling and administrative expenses are budgeted at $60,000 per quarter plus 20 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter 4. Determine seliing and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter. Complete this question by entering your answers in the tabs below. Determine budgeted cost of merchandise purchased for each quarter. ohiplete the budgeted income statement for each quarter Answer is not complete. Comblete this question by entering your answers in the tabs below. Determine budgeted cost of good sold for each quarter. quitred: Gierintine budgeted sales revenue for each quater. leimine bodgeted cost of merchandise purchased for each quarter. Ermine budgeted cost of good soid for each quarter iermine seling and administrative expense for each quarter. smplete the budgeted income statement for each quarter Answer is not complete. Complete this question by entering your answers in the tabs below. Determine sotiling and administrative expense tor each quartec (9) Aacwier is nit complete. Cemblute this alinstion by entering voer answers in the tativ helow. Cumplete the buspoted incoene statement fur each quatec Step by Step Solution
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