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Pinnacle Engineering, an acclaimed chemical engineering team of engineers, chemists, and other scientists, had the following income in 2011:
The following changes are expected in 2012:
1. The company is expecting a 10 percent increase in revenues because of increasing demand in the marketplace for its services.2. Training costs are expected to increase by $30,000.3. Supplies are expected to increase to 10 percent of revenue.4. Phone, fax, and insurance amounts will stay the same.5. Depreciation expense will increase by $15,000 per year, since the company is planning to purchase equipment for $75,000.6. Pinnacle is planning to hire a laboratory technician at a salary of $75,000 per year.7. Utilities and miscellaneous expenses are expected to increase next year by 15 percent.8. Taxes on income will be 40 percent.
Required:
Prepare a budgeted income statement for Pinnacle Engineering for fisical year 2012.
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