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

Greenhill Company's balance sheet as of December 31,Year 1 is provided below:
$\begin{array}{c}\text { Greenway Company}\\\text { Balance Sheet}\\\text { December 31, Year 1}\\\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 35,000 \\\text { Account receivable } & 40,000 \\\text { Inventory } & 25,000 \\\text { Plant and equipment, net of depreciation } & \underline{ 300,000} \\\text { Total assets } & \underline{ \$ 400,000} \\\text { Liabilities and stockholders' equity }\\\text { Accounts payable } & \$ 30,000 \\\text { Notes payable } & 50,000 \\\text { Capital stock, no par } & 200,000 \\\text { Retained earnings } & \underline{ 120,000 }\\\text { Total liabilities and stockholder's equity } & \underline{\$ 400,000}\end{array}\end{array}$
In anticipation of preparing the company's operating budget for the upcoming period,the company's accountant has gathered the following information:
(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.