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 forecasted sales figures: November December S480.000 480.000 Forecast ury S540000 February 580 000 March 480,000 Additional Information Abril forecast $470.000 Of the firm's sales, 50 percent are for cash and the remaining 50 percent are on credt. 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 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 35 percent of sales and is paid for in the month of sales Selling and administrative expense is 15 percent of sales and is also paid in the month of sales. Overhead expense is $26.000 in cash per month Depreciation expense is $11.300 per month Taxes of $9,300 will be paid in January, and dividends of $8,500 will be paid in March Cash at the beginning of January is $106.000, and the minimum desired cash balance is $101.000 a. Prepare a schedule of monthly cash receipts for January, February, and March November 400.000 230,000 March 450.000 S Harry's Carryout Stores Cash Receipts Schedule December January $ 480.000 540.000 240.000 270.000 270.000 84000 149.500 $ 503,500 Sales Credit sales Cash sales One month after sale Two months after sale 240.000 Fruary $ 500 DOS 200.000 200 000 94.500 156.000 $ 540.500 Total cash receipts $ 517 000