Quality Wool Company, a merchandising company, is developing its master as follows: Quality Wool Company Income Statement For Year Ending December 31, 2017 Gross sales Less: Estimated uncollectible accounts Net sales Cost of goods sold Gross profit Operating expenses (including $35,000 depreciation) Net income $1,000,000 (10,500) 989,500 (580,000) 409,500 (250,500) $159,000 The following are management's goals and forecasts for 2018: 1. Selling prices will increase by 6 percent, and sales volume will increase by 4 percent 2. The cost of merchandise will increase by 3 percent. 3. All operating expenses are fixed and are paid in the month incurred. Price increases for o uses straight-line depreciation. 4. The estimated uncollectibles are 2 percent of budgeted sales. Required Prepare a budgeted functional income statement for 2018. Do not use negative signs with any of your answers. Quality Wool Company Budgeted Income Statement For the Year Ending December 31, 2018 Sales s 1,100,000x Less: Estimated uncollectible accounts 22,000