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Revenues 2013 2014 2015 Sales 1,292,400.00 1,305,324.00 1,318,377.24 Expenses Payroll 770,654.00 786,067.08 817,509.76 Office 75,325.00 71,558.75 67,980.81 Advertising 198,456.00 218,301.60 261,961.92 Insurance 22,458.00 22,458.00 22,458.00

Revenues 2013 2014 2015
Sales 1,292,400.00 1,305,324.00 1,318,377.24
Expenses
Payroll 770,654.00 786,067.08 817,509.76
Office 75,325.00 71,558.75 67,980.81
Advertising 198,456.00 218,301.60 261,961.92
Insurance 22,458.00 22,458.00 22,458.00
Training & Research 178,954.00 170,006.30 153,005.67
Service Charges 11,789.00 11,199.55 11,759.53
Total Operating Expenses 1,257,636.00 1,279,591.28 1,334,675.69
Net Operating Income/(Loss) 34,764.00 25,732.72 (16,298.45)
Create a 2016 budget using the following assumptions. For accounts where assumptions are not specified, use trend analysis
1. Payroll costs are expected to increase 5% due to merit raises
2. Service charges will remain constant.
3. Training and research are still critical components of the company and will actually increase by 7%.
What will be the budgeted net income or net loss after all assumptions and trends have been recorded?
(indicate if the figure is a net income or a net loss)

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