Question

vuugee Com UCMCTIC Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows: Pendleton Company Income Statement For Year Ending December 31, 2014 Gross sales Less: Estimated uncollectible accounts Net sales Cost of goods sold Gross profit Operating expenses (including $25,000 depreciation) Net income $2,500,000 (50,000) 2,450,000 (1,375,000) 1,075,000 (625,000) $450,000 Support The following are management's goals and forecasts for 2015: 1. Selling prices will increase by 6 percent, and sales volume will incidase by 4 percent. 2. The cost of merchandise will increase by 3 percent. All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 3. percent. The company uses straight-line depreciation. 4. The estimated uncollectibles are 2 percent of budgeted sales. Required Prepare a budgeted functional income statement for 2015. Do not use negative signs with any of your answers. Pendleton Company Budgeted Income Statement For the Year Ending December 31, 2015 Sales $ 2,756,000 Less: Estimated uncollectible accounts 15.000 x Net sales 0x

Answer 1

Anuwert Dendktan ampont Budgeted Income Statement for the year cniy December 31,215 Saler $2,356,000 les Eshmat Unuleihe atcants C2%942756) $270880 Net Sales ost Goods sd 131Suo pt03 1139,606 680uo Operedy ta penses +25Cas depiuh $454,606 Net gniame