(Budgeting—using Excel) The Ren Company had the following income statement for 2013:

Using a spreadsheet, make a budgeted income statement for 2014 using the following assumptions:
Sales increase by 6%.
The uncollectible sales are 1.1% of sales.
Cost of goods sold in 2013 contained $40,000 of fixed costs that are not expected to change. The variable costs increase at the same 6% rate as sales.
Cash operating expenses are 7.5% of gross sales.
Depreciation increase to $78,000 due to capital additions.
The tax rate for 2014 goes up to 36% of pre-tax income.

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Gross sales Less: estimated uncollectible sales Net sales Cost of goods sold Gross profit Cash operating expenses Depreciation Income before taxes Taxes Net income 800,000 (8,000) (1%) 792,000 (400,000) 392,000 60,000 75,000 257,000 90,000 (35%) $167,000