Return to question 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 Quarter 2 Quarter Quarter 4 37,000 57,000 28,500 57,000 Each T-shirt is expected to sell for $12. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 22 percent of the next quarter's sales Selling and administrative expenses are budgeted at $74,000 per quarter plus 20 percent of total sales revenue. demand 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Return to ques The company needs to have enough T-shirts on hand at the end of each quarter to fill 22 percent of the next quarter's sales demand Selling and administrative expenses are budgeted at $74,000 per quarter plus 20 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Anquired s Determine budgeted cost of merchandise purchased for each quarter. Quartet $32.600 Quarter 2 Quarter 63,2703 $ 22.23083 Budgeted Cost of Merchandise Purchased