How to prepare a Budgeted Income Statement for the month of April with the info below

Good Products Ltd prepares monthly cash budgets. Below is a summary of information taken from the firm's financial records.

The following estimates relate to April:

Credit sales: 320,000

Credit purchases: 210,000

Wages expense: 88 000

Administration expenses: 36,000

Cost of sales: 180,000

Depreciation expense: 12,000

Cash payment for new machinery: 20,000

Cash proceeds from the sale of old machinery: 7,500

Rent expense: 1,200

All sales are on credit. Collections from debtors (accounts receivable) normally have the following pattern: 60 per cent in the month of sale, 30 per cent in the month following the sale, and 10 per cent in the second month following the sale.

Sales in January, February and March were $295,000, $266,000 and $302,000 respectively.

Credit purchases are paid for in the month following the purchase. Credit purchases in March were $182,000 and in February were $194,000.

The company plans to repay a $30,000 loan in May.

The cash balance at 1^st April was $4,000.

Wages and Administration expenses are paid in the month in which the expense arises. Rent was paid in advance in March.