a) Budget an income statement for the months of January, February and March 2018, with the following information Actual sales for the month of October November and December 2017 Sales forecast for the month of January Febtuary and March 2018 Cash sales are 30% and the balance are credit sales. For credit sales 60% of it will be collected in the next month and 20% of it will be collected two months after the sale, and the remaining 20% will be collected three months after the sale. 10,000 .00 @ The purchase of raw material is predicted at 50% of sales and the payments will be made two months later Rentals are RMS 500 per month Salaries are RMG 000 per month The company will pay the building insurance premiums of RM3 000 will be paid in the month of February The purchase of machinery involving a cost of RM60 000 will be made in the month of January Opening cash balance for the month of January was RM20 000 The cash balance that the company intends to hold every month is RM15 000. The following balances are taken from the books of George Anderson at the end of his first year trading on 31 December 2014. Debit Credit Sales 40000 Purchases 18500 Wages and salaries 5100 Repairs and maintenance 1300 Heating and lighting 900 General expenses 1200 Insurance 800 Cash at bank 2200 Cash in hand 1300 Trade receivables 4100 Trade payables 3400 Premises 30000 Fixtures and fittings 10000 Motor vehicle 8000 Capital at 1 January 2014 52000 Drawings 12000 95400 95400 The following additional information is available: Inventory at 31 December 2014 was valued at $4500. Required: (a) Prepare income statement for the year ended 31 December 2014. (b) Prepare a balance sheet as at 31 December 2014