SmartVideo Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in SmartVideo's financial performance. The following income statement shows results for 2017: (Click the icon to view the income statement.) SmartVideo's management team is preparing the 2018 budget and is studying the following information: A (Click the icon to view the information.) Read the recuirements Requirement 1. Prepare a budgcled income statement for the year ending December 31, 2018. (Round your answers to the nearest whole thousand.) SmartVideo Company Budgeted Income Statement for 2018 (In thousands) Revenues: Equipment Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution hiring maintenence technicians and increasing costs of customer maintenance. Customer maintenance increasing ils projection of equipment revenues. Administration Total operating costs maintaining the same level of administration costs as last year. Operating income showing a positive operating income. Requirement 2. How well does the budget align with SmartVideo's strategy? The budget with Smart Video's key strategy of customer satisfaction through maintaining videoconferencing equipment by Requirement 3. How does preparing the budget help SmartVideo's management team better manage the company? The budget helps SmartVideo's management team: (Select all that apply.) coordinate and communicate across different parts of the organization. create a framework for judging performance. look for ways to increase efficiencies and reduce costs. look for ways to improve quality and efficiency while also increasing input prices. manage costs based on revenues and production needs. motivate managers and employees to increase inventory and achieve higher costs. Data Table Smart Video Company Income Statement for the Year Ended December 31, 2017 (in thousands) Revenues: Equipment $ 8,500 1,100 Maintenance contracts Total revenues $ 9,600 4,800 4,800 Cost of goods sold Gross margin Operating costs Marketing 620 Distribution 160 Customer maintenance 1,600 980 Administration Total operating costs 3,360 $ 1,440 Operating income SmartVideo Company is a manufacturer of videoconferencing products. Maintaining the videoconferencing equipment is an important area of customer satisfaction. A recent downturn in the computer industry has caused the videoconferencing equipment segment to suffer, leading to a decline in SmartVideo's financial performance. The following income statement shows results for 2017: (Click the icon to view the income statement.) SmartVideo's management team is preparing the 2018 budget and is studying the following information: A (Click the icon to view the information.) Read the recuirements Requirement 1. Prepare a budgcled income statement for the year ending December 31, 2018. (Round your answers to the nearest whole thousand.) SmartVideo Company Budgeted Income Statement for 2018 (In thousands) Revenues: Equipment Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution hiring maintenence technicians and increasing costs of customer maintenance. Customer maintenance increasing ils projection of equipment revenues. Administration Total operating costs maintaining the same level of administration costs as last year. Operating income showing a positive operating income. Requirement 2. How well does the budget align with SmartVideo's strategy? The budget with Smart Video's key strategy of customer satisfaction through maintaining videoconferencing equipment by Requirement 3. How does preparing the budget help SmartVideo's management team better manage the company? The budget helps SmartVideo's management team: (Select all that apply.) coordinate and communicate across different parts of the organization. create a framework for judging performance. look for ways to increase efficiencies and reduce costs. look for ways to improve quality and efficiency while also increasing input prices. manage costs based on revenues and production needs. motivate managers and employees to increase inventory and achieve higher costs. Data Table Smart Video Company Income Statement for the Year Ended December 31, 2017 (in thousands) Revenues: Equipment $ 8,500 1,100 Maintenance contracts Total revenues $ 9,600 4,800 4,800 Cost of goods sold Gross margin Operating costs Marketing 620 Distribution 160 Customer maintenance 1,600 980 Administration Total operating costs 3,360 $ 1,440 Operating income