Budgeted income statement for the three ninety period ending April 30 2019

1. Balance sheet information as of January 31, 2019: Assets: Cash Accounts Receivable Inventory Equipment (net) 61,000 33,600 70,000 31,000 Liabilities: Accounts Payable Interest Payable Notes Payable 19,200 60 12,000 Stockholders' Equity: Common stock Retained earnings 100,000 64,340 2. Recent and anticipated sales: January February March April S60,000 $75,000 $90,000 $80,000 3, Credit sales: Sales are 80% for credit and 20% cash. Assume that the credit accounts are collected 28% within the month of sale, 70% within the month following the sale, and 2% is uncollectible and written off immediately as a bad debt. 4. Cost of goods sold is 40% of sales. We pay for 20% of the purchases in the month of purchase and the remaining 80% of the purchases in the month following the purchase. 5. Inventory is equal to $70,000 at all times. 6. Operating costs: Salaries and wages average 10% of monthly revenues, other monthly operating costs are $15,000. Assume that these costs are paid out each month. Depreciation is $500 per month. 7. The note payable is due on June 30, 2020, Accrue monthly interest at 6% per annum. 8. Assume that a minimum cash balance of S50,000 must be maintained. Assume also that all borrowing is effective at the beginning of the month and all repayments are made