plenair inc. is located in france and organizes and coordinated art shows and auctions throughout the world. its budget and actual costs for last year follow: total operating expenses budget cost 3,140,000 actual cost 3,176,868. net receipts 6,200,000 actual cost 6,369,200. because the company sells only services, there is no cost of goods sold (net receipt equal gross margin). plenair budget the following fixed costs for the coming year salaries, 1,000,000 advertising expense, 190,000; insurance, 150,000; and space rental costs 300,000. additional information a) net receipts are estimated at 6,400,000 b) travel costs are expected to be 11 percent of net receipts c) auctioneer services will be billed at 15 percent of net receipts d) printing costs are expected to be 190,000 e) home office costs are budgeted for 30,000. f) shipping costs are expected to be 20 percent higher than the 105,000 budgeted the last year. g) miscellaneous expenses for the coming year will be budgeted at 8,000. 1) prepare the company's budgeted income statement for the coming year using 40 percent income tax rate. 2) should the budget committee be worried about trend in the company's operations? explain your answer