You have a small business engaged in the retail sale of ladies and gentlemen's fashions. An accounting year-end is 31st December, and it is now 1st January 2022. Information included on the Statement of Financial Position at 31st December 2021 was as follows:

Trade receivables (due to be received in January 2022)	7000
Trade receivables (due to be received in February 2022)	9000
Trade payables (due to be paid in January 2022)	3000
Closing inventories	7000
Cash at bank	37800
Share capital	16000
Retained profits/losses brought forward	36900
Dividend payable (due to be paid in January 2022)	2300
Taxation payable (due to be paid in January 2022)	600
Shop fixtures and fittings at cost	20000
Depreciation on shop fixtures and fittings	10000
Long-term loan	12000

The shop fixtures and fittings are depreciated on a 25% straight-line basis and there is no scrap value.

You are preparing a business plan for the following three months from January to March 2022. The plan will include a Cash Flow forecast, a forecast Income Statement and a forecast Statement of Financial Position. You predict the following:

• You rent out office space to another local business and receive 360 per month.
• Your motor vehicle running expenses will total 450 per month and are payable in the month in which they are incurred.
• Other expenses will be 2100 a month payable in the month in which they occur.
• You are going to buy a delivery van for the business in January at a cost of 21000 for cash. You will depreciate the van on a 20% straight-line basis. The scrap value of the van is expected to be 4000 at the end of its useful economic life.
• The tax charge for the three months to 31st March 2022 will be 14831 but this will not be paid until May 2022.
• A dividend of 940 was proposed to cover the three months, January to March 2022 but this will not be paid until April 2022.
• Interest on the bank loan is expected to be 60 a month.
• Closing inventory at 31st March 2022 is expected to be 6100.

Prepare a forecast income statement for the three month period to 31st March 2022: Trendy Clothing Ltd. Forecast Income Statement for the three months from 1 January to 31 March 2022

Sales Revenue Less: Cost of Sales Opening Inventory Purchases Closing Inventory Gross Profit HOT Other income Less Revenue Expenditure Other expenses Motor expenses Depreciation on fixtures and fittings Depreciation on van Total Revenue Expenditure Operating Profit (PBIT) Finance costs - Interest Paid 000 100 - Finance costs - Interest Paid Profit / Loss before tax abhi Taxation Profit for the period