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