Greenhill Company's balance sheet as of December $31,$ Year $1$ is provided below:

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 $$400,000.$ 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 $$118,000$ during January, and the inventory

account is expected to have a $$37,000$ balance at January $31,$ Year $2.$ All inventory

purchases are on account.

c$.$ Selling and administrative expenses for January Year $2$ are budgeted at $$78,000$

$($exclusive of depreciation$)$ plus $10\%$ of sales. Selling and administrative expenses are

paid in cash. Depreciation is budgeted at $$4,800$ for the month.

d$.$ The notes payable will be paid in January, Year $2.$ The amount due will be $$52,300.$ The

$$1,400$ 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

$$6,800.$

Required:

Prepare a budgeted income statement for the month of January Year $2.$ Use the traditional

income statement format and ignore income taxes.