Need answer for requirement 2 ONLY.

Requirement 2: Prepare a budgeted income statement for each of the first three months of 2016 and a budgeted balance sheet as at March 31, 2016.

CASE 9-29 Master Budget for a Manufacturer [L03, LO4 Garneau Manufacturing Ltd. produces and distributes a special type of chemical compound called Compound WX. The information below about Garneau's operations has been assembled to assist budget preparation. The company is preparing its master budget for the first quarter of 2016. The budget will detail each month's activity and the activity for the quarter in total. The master budget will be based on the following information: a. Selling price is $60 per unit in 2015 and will not change for the first two quarters of 2016. Actual and estimated sales are as follows: Actual 2015 November: 10,000 units December: 12,000 units Estimated 2016 January: 1000 units February: O,000 units March: 13,000 units Aprit:1000 units May: 10,000 units b. The company produces enough units each month to meet that month's sales plus a desired inventory level equal to 20% of next month's estimated sales. Finished Goods inventory at the end of 2015 consisted of 2,200 units at a variable cost of $33 each. c. The company purchases enough raw materials each month for the current month's production requirement and 25% of next month's production requirements. Each unit of product requires 5 kilograms of raw material at $0.60 per kilogram. There were 13,500 kilograms of raw materials in inventory at the end of 2015, Garneau pays 40% of raw material purchases in the month of purchase and the remaining 60% in the following month