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10 Orange 4 points Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to

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10 Orange 4 points Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. M. Wilson, the banker, will finance construction if the firm can present an acceptable three monta financial plan for January through March. The following are actual and forecast sales figures: Atual Foceeast Montatti November 5540,009 January 9620.000 April forecast 6510,000 December 560.000 February 60,000 March 520.000 dock Print Of the firm's sales. 30 percent are for cash and the remaining 70 percent we on credit Of credit sales 35 percent are paid in the month after sale and 65 percent are paid in the second month after the sale. Materials cost 35 percent of sales and are purchased and received each month in an amount sufficient to cover the following month's expected sales. Materials are paid for in the month after they are received. Labor expense is 45 percent of sales and is paid for in the month of sales. Selling and administrative expense is to percent of sales and is paid in the month of sales Overhead expense is $20,000 in cash per month Depreciation expense is $11.700 per month Taxes of $9700 will be paid in January, and dividends of $10.500 will be paid in March Cash at the beginning of January is $114,000, and the minimum desired cash balance is $109,000 a. Prepare a schedule of monthly cash receipts for January February, and March Harry's Carryout Stores Cash Receipts Shedule November December January February March Sales Credit sales Cash sales One month after sale Two months after we Total cash receipts $ 05 0 $ 4 points b. Prepare a schedule of monthly cash payments for January, February, and March eBook Harry's Carryout Stores Cash Payments Schedule January February March Prins Payments for purchases Labor expense Selling and administrative Overhead Taxes Dividends Total cash payments os $ 0 0 $ c. Prepare a monthly cash budget with borrowings and repayments for January February, and March (Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $0.) Harry's Carryout Stores Cash Budget January February March 4 points Total cash payment $ OS OS ook c. Prepare a monthly cash budget with borrowings and repayments for January February, and March (Negative amounts should be Indicated by a minus sign. Assume the January beginning loan balance is $0. PM Harry's Carryout Stores Cash Budget January February March 0 0 0 Total cash receipts Totalcash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly loan (or repayment) Ending cash balance Cumulative loan balance 0 0 0 0

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