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

Greenhill Company's balance sheet as of December 31,Year 1is provided below: $$\begin{array} { | l | r | } \hline\quad \quad \quad \quad \quad \quad \quad { \text { Greenway Compary } } \\\hline\quad \quad \quad \quad \quad \quad \quad \quad \quad { \text { Balance Sheet } } \\\hline\quad \quad \quad \quad \quad \quad \quad \quad { \text { December } 31,2013 } \\\hline \text { Assets } & \\\hline \text { Cash } & \$ 35,000 \\\hline \text { Accounts recervable } & 40,000 \\\hline \text { Inventory } & 25,000 \\\hline \text { Plant and equipment, net of depreciation } & 300,000 \\\hline \text { Total assets } & \$ 400,000 \\\hline & \\\hline \text { Liabilities and stockhalders' equity } &\\\hline \text { Accounts payable } &\$30,000 \\\hline \text { Notes payable } &50,000 \\\hline \text { Capital stock, no par } & 2000,000 \\\hline \text { Retained earrings } & 120,000 \\\hline \text { Total liabilities and stockholders' equity } & \$ 400,000 \\\hline\end{array}$$ CHANGE NEEDS TO BE MADE TO TABLE
Change the "2013" in the heading to:
Year 1
In anticipation of preparing the company's operating budget for the upcoming period,the company's accountant has gathered the following information:
(a)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.
(b)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.
(c)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.
(d)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.
(e)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.