Greenhill Company's balance sheet as of December 31, Year 1 is provided below: Greenhill Company Balance Sheet Assets Cash Account receivable Inventory December 31, Year 1 $ 37,000 42,000 Plant and equipment, net of depreciation Total assets Liabilities and stockholders' equity Accounts payable Notes payable Capital stock, no par Retained earnings Total liabilities and stockholder's equity 25,200 302,000 $ 406, 200 $ 32,000 50,100 200,000 124, 100 $ 406, 200 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 $240,000. 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 $102,000 during January, and the inventory account is expected to have a $29,000 balance at January 31, Year 2. All inventory purchases are on account. c. Selling and administrative expenses for January Year 2 are budgeted at $62,000 (exclusive of depreciation) plus 10% of sales. Selling and administrative expenses are paid in cash. Depreciation is budgeted at $3,200 for the month. d. The notes payable will be paid in January, Year 2. The amount due will be $50,700. The $600 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 $5,200. Required: Prepare a budgeted income statement for the month of January Year 2. Use the traditional income statement format and ignore income taxes. Greenhill Company Budgeted Income Statement For the Month Ended January 31, Year 2 Operating expenses: