You work as a sales manager in Aeon's Women's Clothing Department. You were asked to prepare a budgeted income statement for the department for the first two months of the coming year. You found and forecasted the following: a. Sales in December were $220,000. Sales were expected to increase 25% in January due to New Year's sales and increase 8% in both February and March. b. The department plans to continue maintaining an ending inventory of 30% of the budgeted sales revenue for the following month. Monthly purchases average 40% of the sales revenue in the same month. c. The actual ending inventory in December was $75,000. d. Additional part-time staff will be hired in January due to New Year's sales. The bud- geted amount of increase in salary expense is $10,000. e. Operating expenses are as follows: Monthly salary expense.... Depreciation expense. Insurance expense..... Income tax......... **** $45,000, paid as incurred $5,000 $ 2,000, expiration of prepaid amount 24% of operating income Requirement Prepare the budgeted income statement for January and February. Show the cost of goods sold calculations.