a new two contract for the building was signed with a 10.00% increase from the prior year
insurance expenses will hold steady due to contract agreement
travel/entertainment will be reduced by 7.00% from prior year
new equipment was purchased in the current year causing a 22.00% increase in depreciation
30% of the payroll cost will increase/decrease based upon the trend; 70% of the payroll will increase by 25.00%
due to anticipated new hires causing contract labor to decrease by 30.00%
all the new hires will cause training expenses to increase by 11.00%

	2014	2015	2016
Sales Revenue	9,800,000	10,780,000	12,397,000
Cost of Goods Sold	6,018,000	6,318,900	6,950,790
Gross Margin	3,782,000	4,461,100	5,446,210

Operating Expenses
Payroll Expenses	1,336,000	1,362,720	1,417,229
Building Expenses	284,800	284,800	284,800
Office Expenses	355,200	337,440	303,696
Advertising Expenses	844,800	1,056,000	1,320,000
Insurance Expenses	299,200	299,200	299,200
Contract Labor Expenses	149,600	127,160	95,370
Travel/Entertainment Expenses	89,500	90,395	91,299
Training Expenses	44,000	41,800	39,710
Service Charges Expenses	13,000	13,000	13,650
Dues/Licenses Expenses	9,800	9,800	9,800
Depreciation Expenses	52,450	49,828	47,336
Total Operating Expenses	3,478,350	3,672,143	3,922,090
Net Income	303,650	788,958	1,524,120
Based upon the assumptions listed above and using trend analysis for the
remainder of the accounts, create a budget for 2017.

Answer rating: 100% (QA)

Heres a budget for 2017 based on the assumptions provided Sales Revenue 2017 13397000 10 increase fr... View the full answer