6-33 Budgeted income statement. (CMA, adapted) Smart Video Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in Smart Video's financial performance. The following income statement shows results for 2014: Smart Video Company Income Statement for the Year Ended December 31, 2014 (in thousands) Revenues Equipment Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution Customer maintenance Administration Total operating costs Operating income $8,000 1,900 630 100 1,100 920 $9,900 4,000 5,900 2,750 $3,150