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 Less: Estimated Net sales Cost of goods sold Gross profit Operating expenses (including $25,000 depreciation) Net income $3,500,000 (70,000) 3,430,000 (1,925,000) 1,505,000 (875,000) $630,000 accounts 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. not use negative signs with any of your answers. Pendleton Company Budgeted Income Statement For the Year Ending December 31, 2015 Sales Less: Estimated accounts Net sales Cost of goods sold Gross profit Operating expenses Net income