Dum Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Me Hewitt, the banker, will finance construction if the fem can present an acceptable three-month financial plan for Janisary through March. Following are actual and forecasted sales figures Actual Forecast tition formation November $380,000 January $450,000 foril forecast $530,000 December 400.000 February 500,000 March 520.000 Of the firm's sales 30 percent are for cash and the remaining 70 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 sale Materials cost 40 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expenses 35 percent of sales and is paid in the month of sales Seling and administrative expenses 6 percent of sales and is also paid in the month of sales Overhead is $32.500 in cash per month amortization expenses $10.900 per month Taxes of $8.900 will be paid in January and dividends of $6.500 will be paid in March Cash at the beginning of January 598.000 and the minimum desired cash balance is $93.000 1. Prepare a schedule of monthly cash receipts for January February and March Si Daniels malts Protect Cah wipe Schedule Dec 1 Credit rates Cash sale Collections in the month after credit sous Collections to the after credit salve Total cash rece 1 b. Prepare a schedule of monthly cash payments for January February and March is acts Cash the Januar Dum Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Me Hewitt, the banker, will finance construction if the fem can present an acceptable three-month financial plan for Janisary through March. Following are actual and forecasted sales figures Actual Forecast tition formation November $380,000 January $450,000 foril forecast $530,000 December 400.000 February 500,000 March 520.000 Of the firm's sales 30 percent are for cash and the remaining 70 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 sale Materials cost 40 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expenses 35 percent of sales and is paid in the month of sales Seling and administrative expenses 6 percent of sales and is also paid in the month of sales Overhead is $32.500 in cash per month amortization expenses $10.900 per month Taxes of $8.900 will be paid in January and dividends of $6.500 will be paid in March Cash at the beginning of January 598.000 and the minimum desired cash balance is $93.000 1. Prepare a schedule of monthly cash receipts for January February and March Si Daniels malts Protect Cah wipe Schedule Dec 1 Credit rates Cash sale Collections in the month after credit sous Collections to the after credit salve Total cash rece 1 b. Prepare a schedule of monthly cash payments for January February and March is acts Cash the Januar
