This is an overwhelming assignment. Any insight would be appreciated.

Company XYZ Historical Income Statement Prior Year 1 Actual Prior Year 2 Actual Budget Year 1 Budget Year 2 Revenue Sales Other Operating Revenue $ 2,000,000 175,000 $ 2,135,000 166,000 Total Revenue 2,175,000 2,301,000 Operating Expenses Salaries Fringe Benefits Supplies Utilities Insurance Depreciation Other Operating Expense 750,000 187,500 37,500 55,000 125,000 200,000 275,000 772,500 193,125 38,438 56,650 125,000 210,000 280,500 Total Operating Expenses 1,630,000 1,676,213 Total Operating Expenses 1,630,000 1,676,213 Operating Income 545,000 624,788 Interest 185,000 190,000 Earning before Taxes 360,000 434,788 Income Tax (@30%) 108,000 130,436 Net Income $ 252,000 304,351 Operating Margin Net Income % 25.1% 11.6% 27.2% 13.2% Additional Historical Information Total number of FTEs (full-time equivalent employees) were 14.4 .The Board of Directors approves salary increases each year Fringe benefits have not increased over the past few years; however, information suggests that this is not a trend that will continue. Total net fixed assets for the organization were $2,500,000 in prior year 1 and $2,600,000 in prior year 2. Assumptions for Budget Year 1 Management has requested an increase in FTEs of 2.5 Salary increases will be given at 2.5% Fringe benefits as a % of total salaries are anticipated to increase 2% Inflation for all non-salary expenses is projected to be 2.5% Capital purchases for the budget year are projected to be $300,000 Sales are projected to increase 2.5% Other operating revenue is projected to increase $25,000 . Assumptions for Budget Year 2 Management has requested an increase in FTEs of 1.5 Salary increases will be given at 1.5% Fringe benefits as a % of total salaries are anticipated to increase 1% Inflation for all non-salary expenses is projected to be 1.5% Capital purchases for the budget year are projected to be $150,000 Sales are projected to increase 3% Other operating revenue is projected to increase $25,000 . Company XYZ Historical Income Statement Prior Year 1 Actual Prior Year 2 Actual Budget Year 1 Budget Year 2 Revenue Sales Other Operating Revenue $ 2,000,000 175,000 $ 2,135,000 166,000 Total Revenue 2,175,000 2,301,000 Operating Expenses Salaries Fringe Benefits Supplies Utilities Insurance Depreciation Other Operating Expense 750,000 187,500 37,500 55,000 125,000 200,000 275,000 772,500 193,125 38,438 56,650 125,000 210,000 280,500 Total Operating Expenses 1,630,000 1,676,213 Total Operating Expenses 1,630,000 1,676,213 Operating Income 545,000 624,788 Interest 185,000 190,000 Earning before Taxes 360,000 434,788 Income Tax (@30%) 108,000 130,436 Net Income $ 252,000 304,351 Operating Margin Net Income % 25.1% 11.6% 27.2% 13.2% Additional Historical Information Total number of FTEs (full-time equivalent employees) were 14.4 .The Board of Directors approves salary increases each year Fringe benefits have not increased over the past few years; however, information suggests that this is not a trend that will continue. Total net fixed assets for the organization were $2,500,000 in prior year 1 and $2,600,000 in prior year 2. Assumptions for Budget Year 1 Management has requested an increase in FTEs of 2.5 Salary increases will be given at 2.5% Fringe benefits as a % of total salaries are anticipated to increase 2% Inflation for all non-salary expenses is projected to be 2.5% Capital purchases for the budget year are projected to be $300,000 Sales are projected to increase 2.5% Other operating revenue is projected to increase $25,000 . Assumptions for Budget Year 2 Management has requested an increase in FTEs of 1.5 Salary increases will be given at 1.5% Fringe benefits as a % of total salaries are anticipated to increase 1% Inflation for all non-salary expenses is projected to be 1.5% Capital purchases for the budget year are projected to be $150,000 Sales are projected to increase 3% Other operating revenue is projected to increase $25,000