Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the companys accountant to prepare next years budget. Ms. Jasper estimates that sales will increase 6 percent for peaches and 11 percent for oranges. The current years sales revenue data follow.

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
Peaches	$	237,000		$	257,000		$	317,000		$	257,000		$	1,068,000
Oranges		417,000			467,000			587,000			397,000			1,868,000
Total	$	654,000		$	724,000		$	904,000		$	654,000		$	2,936,000

Based on the companys past experience, cost of goods sold is usually 70 percent of sales revenue. Company policy is to keep 15 percent of the next periods estimated cost of goods sold as the current periods ending inventory. (Hint: Use the cost of goods sold for the first quarter to determine the beginning inventory for the first quarter.)

Required

1. Prepare the companys sales budget for the next year for each quarter by individual product.

2. If the selling and administrative expenses are estimated to be $680,000, prepare the companys budgeted annual income statement.

3. Ms. Jasper estimates next years ending inventory will be $35,300 for peaches and $57,600 for oranges. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product.