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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
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 managements 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 | Answer |
Net sales | Answer |
Cost of goods sold | Answer |
Gross profit | Answer |
Operating expenses | Answer |
Net income | $ |
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