B Hardware is a company in the retail industry. Assume it is the end of the year and they are preparing their oudgets for the upcoming year. The following information is available: - Expected sales are: January 280000; February 220000. - The company's Cost of Sales is 30% of sales. - The company's purchasing policy is to buy 80% in the month of sale and 20% in the month before sale. - Variable selling and administrative expenses are budgeted at 10% of sales except for a provision of bad debts which came to 2000 in January. Also bad debts expected to be actually written off during January come to 1000. - Fixed selling and administrative expenses are budgeted at 30000 every month which excludes depreciation of 5000. - The company is paying a 15000 instalment per month in order to pay back a long-term loan. Of this amount 5000 represents interest payment and 10000 payment on the principal amount. - The company's tax rate is 20% and tax is paid at the end of the year. Required: Prepare the company's budgeted income statement for January