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'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 $1,900 per month for January -August and will increase to $2,150 on September 1st. 4. Advertising expense is 12% of sates. 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. Total Expenses Income before taxes Income tax expense Net Income/(Loss)