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	$2,500,000
Less: Estimated uncollectible accounts	(50,000)
Net sales	2,450,000
Cost of goods sold	(1,375,000)
Gross profit	1,075,000
Operating expenses (including $25,000 depreciation)	(625,000)
Net income	$450,000

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	$Answer
Less: Estimated uncollectible accounts	Answer
Net sales	Answer
Cost of goods sold	Answer
Gross profit	Answer
Operating expenses	Answer
Net income	$Answer