Budgeted Income Statement Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows: Pendleton Company Income Statement For Year Ending December 31, 2014 Gross sales $1,500,000 Less: Estimated uncollectible accounts (30,000) Net sales 1,470,000 Cost of goods sold (825,000) Gross profit 645,000 Operating expenses (including $25,000 depreciation) (375,000) Net income $270,000 The following are management's goals and forecasts for 2015: 1. Selling prices will increase by 6 percent, and sales volume will increase by 4 percent. 2. The cost of merchandise will increase by 3 percent. 3. All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation. 4. The estimated uncollectibles are 2 percent of budgeted sales. Required Prepare a budgeted functional income statement for 2015. Do not use negative signs with any of your answers. Pendleton Company Budgeted Income Statement For the Year Ending December 31, 2015 Sales Less: Estimated uncollectible accounts Net sales Cost of goods sold Gross profit Operating expenses Net income