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

Description	Amount	Total
Sales		891,446
Subcategory,Expenses:
Sales commission expense	98,059
Rent expense	24,600
Advertising expense	89,348
Salaries expense	204,000
Payroll tax expense	23,108
Depreciation	23,000Single line	Single line
Total Expenses		Single line462,115Single line
Income before taxes		Single line429,331
Income tax expense		128,799Single line
Net Income/(Loss)		Single line300,532Double line

 

Applewood's management also predicts the following information to assist in preparing the budget for the next year.

1. Sales will increase by 8%.
2. Sales Commissions are 11% of sales.
3. Rent expense for next year is $2,050 per month for January - August and will increase to $2,250 on September 1st.
4. Advertising expense is 12% of sales.
5. Salaries are expected to increase by 3%.
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

Description	Amount	Total
Sales
Subcategory,Expenses:
Sales commission expense
Rent expense
Advertising expense
Salaries expense
Depreciation	Single line	Single line
Total Expenses		Single lineSingle line
Income before taxes		Single line
Income tax expense		Single line
Net Income/(Loss)		Single lineDouble line