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 $2,000,000 Less: Estimated uncollectible accounts (40,000) Net sales 1,960,000 Cost of goods sold (1,100,000) Gross profit 860,000 Operating expenses (including $25,000 depreciation) (500,000) $360,000 Net income 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. 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- 3. 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 0X Net income 0x $ OX 0 X OX 0 X OX $ Check