Service Company Budgeted Income Statement. Civil Engineers, LLC, has five engineers who design and maintain wetlands. The company had the following net income for the most current year.
The following information was gathered from management to help prepare this coming year’s budgeted income statement:
o Service revenue will increase 3 percent (e.g., first quarter service revenue for this coming year will be 3 percent higher than the first quarter shown previously).
o Existing engineer and biologist salaries will increase 5 percent, and a new biologist will be hired at the beginning of the second quarter at a quarterly salary of $10,000.
o Administrative staff wages will increase 15 percent.
o Supplies and rent will remain the same.
o Utilities will increase 8 percent.
o Insurance will increase 20 percent.
o Miscellaneous expenses will decrease 5 percent.
Prepare a quarterly budgeted income statement for Civil Engineers, LLC, and include a column summarizing the year.