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 7 percent for peaches and 12 percent for oranges. The current years sales revenue data follow:

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
Peaches	$	228,000		$	248,000		$	308,000		$	248,000		$	1,032,000
Oranges		412,000			462,000			582,000			392,000			1,848,000
Total	$	640,000		$	710,000		$	890,000		$	640,000		$	2,880,000

Based on the companys past experience, cost of goods sold is usually 65 percent of sales revenue. Company policy is to keep 20 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 $34,100 for peaches and $56,500 for oranges. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product

a

First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Total
Peaches	not attempted	not attempted	not attempted	not attempted	$0
Oranges	not attempted	not attempted	not attempted	not attempted	$0
Total	$0	$0	$0	$0	$0

b

JASPER FRUITS CORPORATION
Budgeted Annual Income Statement
Sales revenue	not attempted
Cost of goods sold	not attempted
Gross profit	0
	not attempted
Net income	$0

c

First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Salesselected answer correct	not attempted	not attempted	not attempted	not attempted
Cost of goods soldselected answer correct	not attempted	not attempted	not attempted	not attempted
Plus: Desired ending inventoryselected answer correct	not attempted	not attempted	not attempted	not attempted
Inventory needed	0	0	0	0
Less: Beginning inventoryselected answer correct	not attempted	not attempted	not attempted	not attempted
Required purchases	$0	$0	$0	$0

c2

First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales	not attempted	not attempted	not attempted	not attempted
Cost of goods sold	not attempted	not attempted	not attempted	not attempted
Plus: Desired ending invent	not attempted	not attempted	not attempted	not attempted
Inventory needed	0	0	0	0
Less: Beginning inventory	not attempted	not attempted	not attempted	not attempted
Required purchases	$0	$0	$0	$0