PART 2 (20 minutes) Pavilion Clothing Store is preparing its budget for the coming year. Budgeted sales for the first part of the year are as follows January $208,000 February $260,000 April March $312,000 $390,000 Inventory on December 31 was $166,400. Company's policy that ending inventory is maintained at 200% of the following month's budgeted cost of goods sold. The cost of goods sold is 40% of sales, and all other variable costs are 10% of sales. Fixed costs are $52,000 per month. Required: 1. Prepare a budgeted income statement for January. 2. Prepare a purchases budget for the January and February.