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 3 percent for peaches and 8 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		400,000			450,000			570,000			380,000			1,800,000
Total	$	637,000		$	707,000		$	887,000		$	637,000		$	2,868,000

Based on the companys past experience, cost of goods sold is usually 70 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

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

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

c. Ms.Jasper estimates next years ending inventory will be $35,900 for peaches and $57,400 for oranges. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product.

Ms. Jasper estimates next years ending inventory will be 35,900 for peaches. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.)

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales	$244,110	$264,710	$326,510	$264,710
Cost of goods sold	$170,877	$185,297	$228,557	$185,297
Plus: Desired ending inventory				35,900
Inventory needed	170,877	185,297	228,557	221,197
Less: Beginning inventory
Required purchases	$170,877	$185,297	$228,557	$221,197

Ms. Jasper estimates next years ending inventory will be 57,400 for oranges. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.)

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales
Cost of goods sold
Plus: Desired ending inventory
Inventory needed	0	0	0	0
Less: Beginning inventory
Required purchases	$0	$0	$0	$0