Read and analyze the problems carefully, provide the given, required and present complete solutions systematically in each item.

B. Budgeted Income Statement, Purchases Budget, Cash Budget, Budgeted Balance Sheet. The following information is available for SM Stores: Budgeted sales for January, 2019 = P200,000 Budgeted sales for February, 2019 - 240,000 Cost data: Purchase price of the product = 60% of selling price Commission to salespeople = 10% of sales Depreciation = P2,000 per month Other operating expense = 142,000 per month, including depreciation Balance Sheet at December 31, 2018 had the following accounts and their balances: Cash - P20,000, Account receivable - P110,000, Inventory = P150,000, Building and equipment, net = P200,000, Accounts payable for merchandise P80,000, Capital stock' = P300,000, Retained earnings = P100,000 Additional data: a. SM maintains inventory of 150% of the coming month's sales requirements. b. Sales are collected 40% in the month of sale, 60% in the following month. c. Purchases are paid 30% in the month of purchase, 70% of the following month. d. All other expenses requiring cash are paid in the month incurred. e. The Board of Directors plans to declare a P3,000 dividend on January 10, payable on January 25. Required: Prepare the following: 1. Budgeted Income Statement for January 2. Purchases Budget for January 3. Cash Budget for January 4. Budgeted Balance Sheet as of January 31,2019