b. Prepare a schedule of monthly cash payments for January, February, and March. Answer is complete but not entirely correct. Harry's Carryout Stores Cash Payments Schedule January February March Payments for purchases $ 200,000 $ 147,500 $ 145,000X Labor expense 380,000 400,000 295,000 Selling and administrative 114,000 120,000 88,500 Overhead 40,000 40,000 40,000 10,400 Taxes Dividends 14,000 Total cash payments 744,400 707,500 582,500 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.) Answer is not complete. Harry's Carryout Stores Cash Budget January February March Total cash receipts S 720,400 Total cash payments 719.400 Net cash flow 1,439.800 0 0 Beginning cash balance 128.000 Cumulative cash balance 1.567,800 0 0 Monthly loan (or repayment) 6.000 Ending cash balance 1.573.800 0 0 Cumulative loan balance mere to search 20 < Prev 8 of 8 Next t 8F A Problem 4-25 Complete cash budget [LO4-2] Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: Actual Forecast Additional Information $760,000 April forecast 800,000 590,000 $580,000 November $680,000 January December February March 700,000 I Of the firm's sales, 45 percent are for cash and the remaining 55 percent are on credit. Of credit sales, 40 percent are paid in the month after sale and 60 percent are paid in the second month after the sale. Materials cost 25 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 50 percent of sales and is paid for in the month of sales. Selling and administrative expense is 15 percent of sales and is paid in the month of sales. Overhead expense is $40,000 in cash per month. Depreciation expense is $12,400 per month. Taxes of $10,400 will be paid in January, and dividends of $14.000 will be paid in March. Cash at the beginning of January is $128,000, and the minimum desired cash balance is $123.000. Return to que