Procter & Gamble Co. is preparing its budget for the upcoming fiscal year. The company expects the following:

6. 
   
   • Sales: $80 billion
   • Cost of Goods Sold: 55% of sales
   • Operating Expenses: 25% of sales
   • Interest Expense: $2 billion
   • Tax Rate: 22%

Requirements:

6. 
   
   5. Prepare the budgeted income statement.
   6. Calculate the budgeted net income.
   7. Determine the budgeted gross profit.
   8. Compute the budgeted operating profit.
   9. Evaluate the impact of a 5% increase in sales on net income.