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		882,919
Expenses:
Sales commission expense	97,121
Rent expense	24,000
Advertising expense	89,258
Salaries expense	202,000
Payroll tax expense	22,883
Depreciation	26,000
Total Expenses		461,262
Income before taxes		421,657
Income tax expense		126,497
Net Income/(Loss)		295,160

Applewood's management also predicts the following information to assist in preparing the budget for the next year.

Sales will increase by 7%.

Sales Commissions are 11% of sales.

Rent expense for next year is $2,000 per month for January - August and will increase to $2,300 on September 1st.

Advertising expense is 12% of sales.

Salaries are expected to increase by 3%.

Payroll tax expense is expected to remain 7.65% of commissions and salaries combined.

Depreciation expense is expected to remain unchanged.

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)