Applewood Company is a service based company. They are putting together their budgeted income statement for next year. They project their next year's budget based on prior year's results. Their prior year's income statement follows: le Applewood Company Actual Income Statement For Prior Year Sales 892,665 Expenses: Sales commission expense 98,193 Rent expense 23,400 Advertising expense 89,035 Salaries expense 213,000 Payroll tax expense 23,806 Depreciation 25,000 Total Expenses 472,434 Income before taxes 420,231 Income tax expense 126,069 Net Income/(Loss) 294,162 Applewood's management also predicts the following information to assist in preparing the budget for the next year. 1. Sales will increase by 9%. 2. Sales Commissions are 11% of sales. 3. Rent expense for next year is $1,950 per month for Januay - August and will increase to $2,200 on September 1st. 4. Advertising expense is 12% of sales. 5. Salaries are expected to increase by 3%. 6. Payroll tax expense is expected to remain 7.65% of commissions and salaries combined. 7. Depreciation expense is expected to remain unchanged. 8. The income tax rate is 30%. Prepare a budgeted income statement for the next year. Round all calculations to the nearest whole dollar. Applewood Company Budgeted Income Statement For Next Year Sales 973004 Expenses: Sales commission expense Rent expense Advertising expense Salaries expense Payroll tax expense Depreciation Total Expenses Income before taxes Income tax expense Net Income/(Loss)