Master BudgetPedros Pizza makes frozen pizza dough. The company just finished its first year of operation (12 months, Jan-Dec). The following is its traditional income statement and Balance SheetSales (15,000 units) $ 300,000CGS 180,000Gross Profit $ 120,000Sales Commissions $30,000Salaries30,000Depreciation expense 6,000Net Income $54,000 Cash $5,000 AP $3,000 AR 5,000 Credit Line 7,000 Inventory Raw Mat 9,000 Inventory Finished Goods 3,000 Common Stock 12,000 Equipment60,000 Retained Earn 54,000 Acc Depreciation ( 6,000) Total Assets $76,000 Total L & Eq $76,000VCP wants to prepare a cash budget for the first 3 months of the next year. Use the following estimates:-The quantity sold is projected to increase 4% for the year. Price will increase 5%. Sales are spread evenly throughout the year. CGS should be calculated on a FIFO basis.-25% of sales is collected in the month of sale; the remainder is collected the next month.-Inventory:oLast years Finished Goods and Cost of Goods Sold had a constant cost per unit. oAll raw materials is purchased on credit ($1.50 per lb) and is the same price as last year. Each product requires 2.5 lbs). oEnding inventory for both should be 40% of next months activity (activity is constant).oBeginning and ending WIP is zero-20% of purchases are paid in the month of purchase, 80% in the following. All other expenses are paid with cash.-Direct Labor is 0.2 hours per product at $30 per hour. Variable Overhead is $2.25 per product. Fixed Overhead is zero.-The credit line is used for cash shortfalls. Excess cash will pay down this line. Interest is 1% per month of last months balance.-Projections are to buy $6000 of new equipment at the end of January. Equipment is depreciated straight-line to zero salvage over 5 years. All of this is used in administration.-Sales commission rate will remain the same. Salaries will increase by 4%.-VCP wants to maintain a minimum cash balance of at least $5,000. Excess to repay credit line.

j. Projected monthly Income statement for Jan, Feb, Mar