Instructions: Your SME will provide the numerical data and other information pertaining to the year-end income statement and ideas the company has for the upcoming year. Use that information to complete a budget for the upcoming year by filling in the highlighted cells in the first table. Then, using the Line Item Notes table, illustrate to the organization how each line item in the budget was prepared by filling in the highlighted cells. | Line Item Notes I J AMcarParts, Inc. Budgeted Income Statement (Template) For the Upcoming Year Revenues Operating Expenses Salaries and Wages Payroll taxes, etc. Supplies Delivery Fleet Communications Insurance Office supplies Miscellaneous | Operating Income |0ther Income/Expense Interest expense IIncome Before Income Taxes |Provision for Income Taxes | Net Income 1L r T T ] AMcarParts, Inc. Income Statement For the Year Just Ended Revenues S 300,000 Operating Expenses Salaries and Wages S 220,000 Payroll taxes, etc. 22,000 Supplies 16,000 Delivery Fleet 10,000 Communications 5,400 Insurance 2,400 Office supplies 2,000 Miscellaneous 6,000 283,800 |Operaring Income 16,200 |0(her Income/Expense Interest expense (2,400) | Income Before Income Taxes 13,800 | Provision for Income Taxes (3,036) Net Income S 10,764 I Last Year's Activities I |1. Revenue is from selling after-market automotive parts. |24 Salaries are $100,000 and wages are $120,000. |3A Payroll taxes are 10% of salaries and wages. |4. Supplies include raw materials, hardware, tools, etc. | All items are needed to manufacture car parts. 5. Gas, maintenance, etc are for delivery vehicles. |6. Company cell phone plan costs $450 per month. 7. Insurance is for liability, vehicles, and unemployment. |8A Office supplies include tablets and receipt books. 9. Miscellaneous is unknown. | 10. Interest expense is for purchase of the delivery fleet. |11. Provision for income taxes is 22% I IAssumptions I |1. Increase revenue by 10%. |2. Increase salaries by 8% and wages by 2%. |3A Payroll taxes remain at 10% of salaries and wages. |4. Supplies expected to increase by $1,000. |5A Gas, maintenance, etc expected to increase by 5%. |6. Current cell phone plan will increase by 3%. |7. Current insurance provider quoted a 5% increase. |8A Planning to update 10 tablets at $400each. |9. Miscellaneous may increase by $2,000. |10. Interest expense will remain the same. |11. Provision for income taxes remains at 22%