Using the budget forecast data provided below for January, February and March, produce the forecast income statement and cash flow forecast for those three months. The following notes are also provided: Notes 1. Recent information suggests that direct labour costs will rise by 15% from current predicted values. 2. All other forecast income and expenditure and the timings of cash inflows and outflows remain the same as before. 3. Fixed costs in the income statement: f2, 175 per month for January, February and March. 4. Forecast cash payments for rent, machinery and tools, electricity, rates, insurance and drawings: January: E3,000 (rent) + 15,000 (machinery and tools) + f1,500 (insurance) + $2,000 (drawings) = E21,500. February: E1,200 (rates) + f2,000 (drawings) = f3,200. March: E1,500 (electricity) + E2,000 (drawings) = f3,500. 5. Cash introduced by the business: f10,000 Forecasts Direct Labour Cost January February March Total f f E Dining Chairs 3,750 5,000 8,750 17,500 Coffee Tables 1,800 4,500 5,400 11,700 Kitchen Cabinets 9,000 10,500 12,000 31,500 Total Direct Labour Cost 14,550 20,000 26,150 60,700 Sales Forecast in Units January February March Total Dining Chairs 150 200 350 700 Coffee Tables 100 250 300 650 Kitchen Cabinets 300 350 400 1050 Unit Costs: Chairs Tables Cabinets E f Selling Price 85.00 50.00 80.00 Materials: Wood Costs 18.00 12.60 10.80 Materials: Other Costs 2.00 5.40 9.20 Timing of cash receipts From sales For wood In the Month of Sale/use 30% 50% In the Following Month 70% 30% After Two Months 20%