Magbruka Corporation is about to start operation on January 1, 2021. The following information are available. 1. January sales are estimated at $700,000.00. The company normally collects 70% sales during the month and 28% the following month. The remaining 2% is noted as bad debt. The company ending accounting Receivable in January is 100,000.00. 2. Purchases are estimated at $300,000.00 of which 60% will be paid on the month of purchased and the other 40% will be paid the following month 3. The gross profit margin is estimated to be 35% of Sales 4. The company estimated fixed selling and administrative expenses to be 5% of Sales of which 70% is paid in the month of the expense and 30% the following month. The account does not include any depreciation amount. 5. The company debt service is estimated to be $20,000.00 of which $5,000.00 represents interest expense and the remainder is the principle payment. 80% payment is made on the interest expense during the month of January 6. The company estimated tax rate is 30%. 7. The company estimated depreciation to be $6,000.00 A. The Corporation has asked you as the controller/Treasurer to prepare the budgeted Income statement for the month of January based on the following assumption above