Greenhill Company's balance sheet as of December 31, Year 1 is provided below. Greenhill Company Balance Sheet December 31, Year 1 Assets Cash Account receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and stockholders' equity $ 39,000 44,000 25,400 304,000 $ 412,400 Accounts payable Notes payable Capital stock, no par $ 34,000 50,200 200,000 Retained earnings 128,200 Total liabilities and stockholder's equity$ 412,400 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 $260,000. 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 $104,000 during January, and the inventory account is expected to have a $30,000 balance at January 31, Year 2. All inventory purchases are on account. c. Selling and administrative expenses for January Year 2 are budgeted at $64,000 (exclusive of depreciation) plus 10% of sales. Selling and administrative expenses are paid in cash. Depreciation is budgeted at $3,400 for the month. d. The notes payable will be paid in January, Year 2. The amount due will be $50,900. The $700 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 $5,400. 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