The Delhi Electrical Supply Company Ltd has a business of supplying electrical goods to various government and non-government companies. The controller, in collaboration with the economist, has...

The Delhi Electrical Supply Company Ltd has a business of supplying electrical goods to various government and non-government companies. The controller, in collaboration with the economist, has developed the following equation that, he says, will forecast sales quite well, based on past pattern of behaviour: monthly sales (amount) = `1,00,000 + (`2,000 x orders received in prior month). The sales manager is confused and seeks your advice. He presents you with the following data regarding actual and forecast numbers of orders. The forecasts have generally been quite accurate.

It is the first week of September, the sales manager would like the forecasts of sales and income for as many months as you can prepare. The cost accountant informs you that costs of goods sold, which are all fixed costs, amount to `2,00,000 per month. You are required to prepare the budgeted income statement for as many months as you can.