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$1,500,000

Less: Estimated uncollectible accounts(30,000)

Net sales1,470,000

Cost of goods sold(825,000)

Gross profit645,000

Operating expenses (including $25,000 depreciation)(375,000)

Net income$270,000

The following are management's goals and forecasts for 2015:

1.Selling prices will increase by 6 percent, and sales volume will 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 signswith any of your answers.

Pendleton Company Budgeted Income Statement For the Year Ending December 31, 2015

Sales$ (Answer)

Less: Estimated uncollectible accounts (Answer)

Net sales (Answer)

Cost of goods sold (Answer)

Gross profit (Answer)

Operating expenses (Answer)

Net income$ (Answer)