question about accointing

Question II: A. Fofoyaya Corporation is about to start operation on December 1, 2016. The Corporation has asked you as the controller/Treasurer to prepare the budgeted Income statement for the month of December based on the following assumption: 1. December sales are estimated at $300,000.00 of which 30% and 67% will be collected during the month of sales and the following month respectively. The remaining 3% is noted as bad debt. 2. Purchases are estimated at $200,000.00 of which 80% will be paid on the month of purchased and the other 20% will be paid the following month 3. The gross profit margin is estimated to be 40% of Sales