View History Bookmarks People Window Help 31%D Fri 1:05 AM nity Colle DMy Academic Requireme SAA STD DS.pdf Chapter 13 Homework Q Lumen OHM Assessment os//ohm.lumenlearning.com/assessment/showtest.php?action-skip&score-5 Applewood Company is a service based company. They are putting together their budgeted income statement for next year. They project their next year's budget based on prior year's results. Their prior year's income statement follows: Applewood Company Actual Income Statement For Prior Year Sales 883,375 Expenses: Sales commission expense Rent expense Advertising expense 97,171 24,000 89,941 206,000 Salaries expense 23,193 Payroll tax expense Depreciation 25,000 465,305 Total Expenses 418,070 Income before taxes 125,421 Income tax expense 292,649 Net Income/(Loss) X Show All History Bookmarks People Window Help 31 % D Fri 1:06 AM le My Academic Requiremer SAA STD DS.pdf AChapter 13 Homework Q Lumen OHM Assessment m.lumenlearning.com/assessment/showtest.php?action=skip&score=5 Applewood's management also predicts the following information to assist in preparing the budget for the next year. 1. Sales will increase by 7%. 2. Sales Commissions are 11% of sales. 3. Rent expense for next year is $2,000 per month for January - August and will increase to $2,400 on September 1st. 4. Advertising expense is 12% of sales. 5. Salaries are expected to increase by 36. 6. Payroll tax expense is expected to remain 7.65% of commissions and salaries combined. 7. Depreciation expense is expected to remain unchanged 8. The income tax rate is 30%. Prepare a budgeted income statement for the next year. Round all calculations to the nearest whole dollar. Applewood Company Budgeted Income Statement For Next Year 945211.25 Sales Expenses: Show All Applewood Company Budgeted Income Statement For Next Year Sales 945211.25 Expenses: Sales commission expense 103973.24 Rent expense Advertising expense Salaries expense Payroll tax expense Depreciation Total Expenses Income before taxes Income tax expense Net Income/(Loss) 308592.86 Points possible: 11