Chapter Problem

The following is Peloton's income statement for the year ended December $31,2022.$

All depreciation charges are fixed and are expected to remain the same for $2023.$ Sales volume is expected to fall by $5\%,$ but prices are expected to rise by $15\%.$ Material costs

per unit are expected to increase by $12\%.$ Other unit variable manufacturing costs are expected to decrease by $10\%$ per unit. Fixed costs are expected to increase by $4\%.$

Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by $5\%.$ Inventories are kept at zero. Peloton operates on a cash basis.

Required: Using Excel, prepare a budgeted income statement for $2023.$ Include the $2022$ income statement for comparison purposes.

Please use excel and include formulas. THANK YOU!

Budgeted Income statement: Sales$-$COGS$=$gross prof$-$revenues$=$net income