Greenhill Company's Balance Sheet as of December 31, Year 1

Greenhill Company's balance sheet as of December 31, Year 1 is provided below:
$\begin{array}{c}\text {Washington Company}\\\text {Balance Sheet}\\\text {December 31, Year 1}\\\\\begin{array}{lr}\text { Assets }\\\\\text { Cash } & \$ 35,000 \\\text { Accounts receivable } & 40,000 \\\text { Inventory } &25,000 \\\text { Plant and equipment, net of depreciation } & \underline{ 300,000} \\\text { Total assets } & \underline{ \$400,000}\\\text { Liabilities and stockholders' equity }\\\\\text { Accounts payable } & \$30,000 \\\text { Notes payable } &50,000 \\\text { Capital stock, no par } & 200,000 \\\text { Retained earnings } & \underline{ 120,000 }\\\text { Total liabilities and stockholder's equity } & \underline{\$ 400,000}\end{array}\end{array}$ In anticipation of preparing the company's operating budget for the upcoming period, the company's accountant has gathered the following information:December Year 1 sales were $220,000. Sales are expected to grow at a rate of 8% per month. Half of all sales are for cash and half are on account.Inventory purchases are expected to total $100,000 during January, and the inventory account is expected to have a $28,000 balance at January 31, Year 2. All inventory purchases are on account.Selling and administrative expenses for January Year 2 are budgeted at $60,000 (exclusive of depreciation) plus 10% of sales. Selling and administrative expenses are paid in cash. Depreciation is budgeted at $3,000 for the month.The notes payable will be paid in January, Year 2. The amount due will be $50,500. The $500 represents interest expense for the month of January, Year 2.The company expects to purchase a new machine during January Year 2 at a cost of $5,000.Required:Prepare a budgeted income statement for the month of January Year 2. Use the traditional income statement format and ignore income taxes.