a) Budget an income statement for the months of January, February and March 2018, with the following information i) Actual sales for the month of October November and December 2017 ii) Sales forecast for the month of January February and March 2018 iii) 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. Month October November December January February March Sales (RM) 80,000.00 90,000.00 110,000.00 120,000.00 130,000.00 150,000.00 iv) vi) vii) The purchase of raw material is predicted at 50% of sales and the payments will be made two months later Rentals are RM5 500 per month Salaries are RM6 000 per month The company will pay the building insurance premiums of RM3 800 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. viii) ix) x)