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: Budgeted unit sales Quarter 1 Quarter 2 Quarter 3 Quarter 4 45,000 70,000 35,000 70,000 Each T-shirt is expected to sell for $20. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter's sales demand Selling and administrative expenses are budgeted at $90,000 per quarter plus 18 percent of total sales revenue. . Required: 1. Determine budgeted sales revenue for quarters 1, 2 and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2 and 3. 3. Determine budgeted cost of good sold for quarters 1, 2 and 3. 4. Determine selling and administrative expenses for quarters 1, 2 and 3. 5. Complete the budgeted income statement for quarters 1, 2, and 3. Complete this question by entering your answers in the tabs below. Required Required 1 Required 2 Required 3 Required 4 Determine budgeted sales revenue for each quarter, Quarter 1 Quarter 2 Quarter Budgeted Sales Revenue Rogur 1 Required 2 > 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: Budgeted unit salen Quarter 1 Quarter 2 Quarter 3 Quarter 4 45,000 70,000 35,000 70,000 Each T-shirt is expected to sell for $20. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter's sales demand Selling and administrative expenses are budgeted at $90,000 per quarter plus 18 percent of total sales revenue. . Required: 1. Determine budgeted sales revenue for quarters 1, 2, and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2 and 3. 3. Determine budgeted cost of good sold for quarters 1, 2 and 3. 4. Determine selling and administrative expenses for quarters 1, 2 and 3. 5. Complete the budgeted income statement for quarters 1, 2, and 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine budgeted cost of merchandise purchased for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Merchandise Purchased 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: Budgeted unit nales Quarter 1 Quarter 2 Quarter 3 Quarter 4 45,000 70,000 35,000 70,000 Each T-shirt is expected to sell for $20. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $90,000 per quarter plus 18 percent of total sales revenue. . 5 Required: 1. Determine budgeted sales revenue for quarters 1, 2 and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2 and 3. 3. Determine budgeted cost of good sold for quarters 1, 2 and 3. 4. Determine selling and administrative expenses for quarters 1, 2 and 3. 5. Complete the budgeted income statement for quarters 1, 2 and 3. Complete this question by entering your answers in the tabs below. Required Required 1 Required 2 Required 3 Required 4 Determine budgeted cost of good sold for each quarter. Quarter 1 Quarter 2 Budgeted Cost of Goods Sold Quarter 3 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: Budgeted unit sales Quarter 1 Quarter 2 Quarter 3 Quarter 4 45,000 70,000 35,000 70,000 Each T-shirt is expected to sell for $20. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter's sales demand Selling and administrative expenses are budgeted at $90,000 per quarter plus 18 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for quarters 1, 2 and 3. 2. Determine budgeted cost of merchandise purchased for quarters 1, 2 and 3. 3. Determine budgeted cost of good sold for quarters 1, 2, and 3. 4. Determine selling and administrative expenses for quarters 1, 2 and 3. 5. Complete the budgeted income statement for quarters 1, 2 and 3. Complete this question by entering your answers in the tabs below. Required i Required 2 Required 3 Required 4 Required 5 Complete the budgeted income statement for each quarter. RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 Budgeted Gross Margin Budgeted Net Operating Income
