2 Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Me Wilson, the banker will finance construction of the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures. 7 polis Actual Forecast Additional Information November $640,000 January $720,00. April forecast $560.ee December 660,00 February 260.00 March 570,000 8 031023 of the firm's sales, 50 percent are for cash and the remaining 50 percent are on credit. Of credit sales, 20 percent are paid in the month after sale and 80 percent are paid in the second month after the sole Materials cost 40 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 30 percent of sales and is paid for in the month of sales Selling and administrative expense is 20 percent of sales and is paid in the month of sales Overhead expense is $33,000 in cash per month Depreciation expenses $12.200 per month Toves of 10 200 will be paid in January, and dividends of $13,000 will be paid in March Cash at the beginning of January is $124.000, and the minimum desired cash balance is $119,000. a. Prepare a schedule of monthly cash receipts for January February, and March Sales Credt salos Cash sales Orion here Two months after sale Total cash Harry's Carryout Stores Cash Recipts Schedule November December January $ 10,000 000.000 720,000 320.000 330.000 350.000 900.000 36.000 250,000 5 082.000 6 February 700.000 350.000 350,000 72.000 264.000 710.0005 March 570,000 265.000 205,000 70,000 288.000 040,000 eBook b. Prepare a schedule of monthly cash payments for January, February, and March eferences Harry's Carryout Stores Cash Payments Schedule January February March Payments for purchases Labor expense Selling and administrative Overhead Taxes Dividends Total cash payments $ 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 682,000 $ 716,000 $ March 149,000 682,000 710,000 649,000 Total cash rochips Total cash payments Netflow Boginning chance Cumulative cas balance Monthly loan (or ropayment) Ending cash balanco Cumulative loan balance 682.000 710,000 840,000 082.000 716,000 649.000