Q2. Michelle Enterprises reports the year-end information from 20X5 as follows:

Sales (100,000 units) $250,000

Less: Cost of goods sold 150,000

Gross profit 100,000

Operating expenses (includes $10,000 of Depreciation) 60,000

Net income $ 40,000

Michelle is developing the 20X6 budget. In 20X6 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%. Cost of goods sold as a percentage of sales is expected to increase to 62%. Other than depreciation, all operating costs are variable.

Required: Prepare a budgeted income statement for 20X6.

please answer with full steps