Collected sales 1.174,000 Cost of goods sold 780.000 Profit before operating expense 394.000 Operating expenses (including $15,000 depreciation) 206.000 Income before tax $188.000 The following are management's goals and forecasts for next year: 1. Selling prices will increase by 3%%, and sales volume will increase by 5%% 2. The cost of merchandise will increase by 29. 3. All operating expenses are fixed. Price increases for operating expenses will be 40. The company uses straight-line depre 4. The estimated uncollectibles are 25% of budgeted sales. Required Prepare a budgeted functional income statement for next year. Do not use negative signs with any of your answers. Quality WoolCompany Budgeted Income Statement For the Year Ending December 31 5a es Less uncollectible accounts Collected sales Cost of woods sold. Profit before operating expense Operating expenses come before tax