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:

	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Budgeted unit sales	46,000	72,000	36,000	72,000

Each T-shirt is expected to sell for $21.

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 31 percent of the next quarters sales demand.

Selling and administrative expenses are budgeted at $92,000 per quarter plus 20 percent of total sales revenue.

Required:
1.	Determine budgeted sales revenue for each quarter

Quarter 1 Quarter 2 gee,00ofs 1,152,000| $ Quarter 3 Budgeted Sales Revenue$ 750,000 2. Determine budgeted cost of merchandise purchased for each quarter. Quarter 1 Quarter 2Quarter3 Budgeted Cost of Marchandise Purchased 3. Determine budgeted cost of good sold for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Goods Sold 4. Determine selling and administrative expenses for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Selling and Administrative 5. Complete the budgeted income statement for each quarter. RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 Budgeted Net Operating Income