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Budgeted Income Statement 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 525,000 depreciation) Net income (40,000) 860,000 (500,000) 5360.000 The following are management's goals and forecasts for 201 5: I. Selling prices will increase by 6 percent, and sales volume WII increase by 4 percent. 2. The cost of merchandise will increase by 3 percent. 3. All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 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 Less: Estimated uncollectible accounts Net sales Cost of goods sold Gross profit Operating expenses Net income