P07-22A-MULLIGAN FRUITS CORPORATION_Solution

Given Data P07-22A-MULLIGAN FRUITS CORPORATION
Expected annual sales growth rate:
Peaches                       5%
Oranges                       10%

Sales in Current Year  1st Quarter      2nd Quarter     3rd Quarter    4th Quarter      Total
Peaches                       $160,000         $200,000         $320,000         $280,000       960,000
Oranges                       $400,000         450,000           570,000           380,000      1,800,000
Total                            $560,000         $650,000         $890,000         $660,000    2,760,000

Additional Information:
Cost of goods sold – percentage of sales revenue                                          60%
Ending inventory - percentage of next period's cost of goods sold               10%
Part b. - Estimated selling and administrative expenses                                 $700,000
Part c. - Estimate of ending  inventory for next year:
Peaches                                                           $20,000
Oranges                                                           $40,000

Required:

a.       Sales Budget

b.      Budgeted Annual Income Statement

c.       Inventory Purchase Budget