Top Surface, Inc. sells laptop cases and has the following sales forecast:

Month	Units
Jan	600
Feb	800
March	400
April	900

The January 1^st inventory is 80 units. Management desires an ending inventory each month equal to 20% of the next months sales. The products are sold for $50 each and cost $30 to purchase.

The company makes all sales on account and expects that 80% of the sales will be collected in the month of sale and 20% will be collected in the following month. The company pays for all purchases in the month of the purchase. The company also pays monthly payroll of $8,000 and rent of $1,200.

The company had cash of $45,000 on hand at January 1.

Required:

1. On your own paper (or in Word or Excel), prepare a purchases budget and an income statement budget for February and March.
2. Upload a picture of your paper (or a file if using Word or Excel).