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: November, 380000 December 400000 January 460000 February 500000 March 440000 April 430000

Of the firms 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 sale. Materials cost 25 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 50 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 $32,500 in cash per month. Depreciation expense is $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 is $98,000, and the minimum desired cash balance is $93,000. Prepare a schedule of monthly cash payments for January, February, and March.

Payment for Purchases, Labor Expenses, Selling and administrative, overhead, taxes, dividends and total cash payments for January, February and March