Harrys 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
November	$360,000		January	$440,000		April forecast	$420,000
December	380,000		February	480,000
			March	430,000

Of the firms sales, 50 percent are for cash and the remaining 50 percent are on credit. Of credit sales, 50 percent are paid in the month after sale and 50 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 months 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 10 percent of sales and is paid in the month of sales. Overhead expense is $22,000 in cash per month.

Depreciation expense is $10,800 per month. Taxes of $8,800 will be paid in January, and dividends of $6,000 will be paid in March. Cash at the beginning of January is $96,000, and the minimum desired cash balance is $91,000.

I cannot seem to figure out the monthly loan repayment for March and the cumulative loan balance for Feb. Everything else is correct.

	January	February	March
Total Cash Receipts	$ 405,000	$ 445,000	$ 445,000
Total Cash Payments	$ (426,800)	$ (454,000)	$ (415,000)
Net Cash Flow	$ (21,800)	$ (9,000)	$ 30,000
Beginning Cash Balance	$ 96,000	$ 91,000	$ 91,000
Cumulative Cash Balance	$ 74,200	$ 82,000	$ 121,000
Monthly loan (repayment)	$ 16,800	$ 9,000	$ (30,000)
Ending Cash Balance	$ 91,000	$ 91,000	$ 91,000
Cumulative loan balance	$ 16,800	$ 30,000