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: Applewood Company Actual Income Statement For Prior Year Sales 887,304 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) 97,603 24,600 89,035 203,000 22,996 23,000 460,234 427,070 128, 121 298,949 Applewood's management also predicts the following information to assist in preparing the budget for the next year. 1. Sales will increase by 7%. 2. Sales Commissions are 11% of sales. 3. Rent expense for next year is $2,050 per month for January - August and will increase to $2,400 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 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)