Prepare a budgeted income statement for Paver Engineering for fiscal year 2021.

Paver Engineering, an acclaimed chemical engineering team of engineers, chemists, and other scientists, had the following income in 2020: $3,120,000 Revenue Less operating expenses: Salaries Accounting services Training Supplies Phone and fax Insurance Depreciation Utilities Miscellaneous Total operating expenses Income before taxes Less taxes on income $2,112,000 56,200 160,000 154,000 3,400 266,400 193,600 30,800 6,100 2,982,500 137,500 27,500 $110,000 Net income The following changes are expected in 2021: 1. 2. 3. 4. The company is expecting a 10 percent increase in revenues because of increasing demand in the marketplace for its services. Training costs are expected to increase by $44,000. Supplies are expected to increase to 8 percent of revenue. Phone, fax, accounting services, and insurance amounts will stay the same. Depreciation expense will increase by $8,000 per year, since the company is planning to purchase equipment for $66,400. Paver is planning to hire a laboratory technician at a salary of $31,600 per year. Utilities and miscellaneous expenses are expected to increase next year by 10 percent. Taxes on income will be 20 percent. 5. 6. 7. 8. Budgeted Income Statement $ > |