Sampson Merchandising Firm is developing its budgets for Year 2. The Year 1 income statement is as follows: Sales (200,000 units) $500,000 Less Cost of goods sold 325,000 Gross profit $175,000 Operating expenses (includes $20,000 of depreciation) 120,000 Net income $ 55,000 Selling prices will increase by 10 percent, and sales volume in units will decrease by 6 percent. The cost of goods sold as a percent of sales will decrease to 62 percent. Other than depreciation, all operating costs are variable. Prepare a budgeted income statement for Year 2