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 forecasted sales figures: Actual Forecast Additional Information November $600,000 January $680,000 April forecast $540,000 December 620,000 February 720,000 March 550,000 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 30 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 40 percent of sales and is paid for in the month of sales. Selling and administrative expense is 20 percent of sales and is also paid in the month of sales. Overhead expense is $38,000 in cash per month. Depreciation expense is $12,000 per month. Taxes of $10,000 will be paid in January, and dividends of $12,000 will be paid in March. Cash at the beginning of January is $120,000, and the minimum desired cash balance is $115,000. a. Prepare a schedule of monthly cash receipts for January, February, and March. b. Prepare a schedule of monthly cash payments for January, February, and March. 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.)

, the bankw, wil froce ment he mcan pret anrceplsble thmth fr Is C See he ch ineatns The rmwhws io weard by pn r ttgh ach The wing ..... 228.000 a st rin he morh aected sales t Decrerkcenerege ts 512 000peuTnt Teaet S10.020 wbe ul are and citer ofS12 000 wbe cakt in dCet st Ite tearrino of.ate is 5120 000 ared Ihe irkruneeket d be ts 5115 000 a Penare a ecedEectmoti cash recelzts tor anuan Februan 2nd Harth Her Masd Jauay Febuay Tun neots atereae shd sedt reega Februy Nch Januare pusta Cayand whskd Tanee wwwn _ e. cpare a moty cash ougget wn DoTOwngs and repapnes or January, Fconary, and Narch ag amouns shoula be indieatsd by amnus sige. Assuma die January egenng an anes is so Mary Curyot Sot c. Prepare a monthly cash budoet wth borrowings and repavments for January, February, and March, (Neaative amounts should t Indicated by a minus sign. Assume the January beginning loan balance is $0.) Harry's Caryout Stores Cush Payments Schedule January February March Tatal cash racaipts Total cash nauments Nel cash low Beginning cash balance aicash halance . Endng cash bulance Cumulative loan balance