Eddie's Convenience Stores Income Statement Year Ended December 31, 2017 Sales $ 958,000 717,000 Cost of sales Gross profit 241,000 108,000 Operating expenses $ 133,000 Net income Eddie's Convenience Stores Balance Sheet December 31, 2017 Assets Liabilities and Capital Cash $ 39,000 Accounts payable $ 28,000 185,000 Inventories 65,000 Note payable 266,000 Total liabilities Land and buildings, net 213,000 157,000 Owner, capital Eddie's Convenience Stores' income statement for the year ended December 31, 2017, and its balance sheet as of December 31, 2017, are as follows: Click the icon to view the financial statements.) (Click the icon to view additional information.) Read the requirements. Requirement 1. One of the most important decisions a manager makes is the amount of inventory to purchase. Show how to determine the amount of inventory to purchase in 2018. Purchases, budgeted Requirement 2. Prepare the store's budgeted income statement for 2018 to reach the target net income of $156,000. To reach this goal, operating expenses must decrease by $1,310. Eddie's Convenience Stores Budgeted Income Statement Year Ended December 31, 2018 Sales Cost of sales Gross profit Operating expenses $ 156,000 Net income Choose from any list or enter any number in the input fields and then continue to the next question. The business is organized as a proprietorship, so it pays no corporate income tax. The owner is budgeting for 2018 and expects sales and cost of goods sold to increase by 9%. To meet customer demand, ending inventory will need to be $84,000 at December 31, 2018. The owner hopes to earn a net income of $156,000 next year