Using the information for Hornick and Sena, the systems consultants in P9-3 and P9-4, prepare a budgeted income statement for the year ended December 31, 2013.

In p9-3

Hornick and Sena, partners in a systems consulting firm, budgeted the following professional labor hours for the year ended December 31, 2013:

Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000

Staff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Partners have a billing rate of $225 per hour and actually earn $110 per hour. Associates bill out at $140 per hour and earn $85 per hour. Staff bill out at a rate of $75 per hour and earn $35 per hour.

In P9-4

Hornick and Sena, the systems consultants in P9-3, budgeted overhead and other expenses as follows for the year ended December 31, 2013:

Overhead:

Depreciation­equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 60,000

Depreciation­building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..135,000

Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,000

Photocopying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,000

Secretarial support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,000

Telephone/fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,000

Other direct expenses:

Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000

Meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000