Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to. 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:
10 10 Total cash receipts 6 . Prepare a schedule of monthly cash payments for January , February , and March Harry's Carryout Stores Cash Payments Schedule* January February March Payments for purchases Labor expense Selling and administrative* Overhead Taxes Dividends Total cash payments $ $ 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 50 . ) Harry's Carryout Stores Cash Payments Schedule*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 50 . ) Harry's Carryout Stores Cash Payments Schedule* January February March Total cash receipts* Total cash payments Net cash flow O Beginning cash balance* Cumulative cash balance* 10 Monthly loan ( or repayment ! Ending cash balance* Cumulative loan balance* @ BOOK & Resources EBOOK. Cash BudgetHarry'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 ." Actual Forecast Additional Information* November $380, 000 January* $ 460,000 April forecast $430, 000 December 400, 000 February 500 , 000 March 140.000 Of the firm's 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 month's 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 also 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 $5, 500 will be paid in March . Cash at the beginning of January is $98 ,000 , and the minimum* desired cash balance is $93,000 . 2 . Prepare a schedule of monthly cash receipts for January , February , and March* Harry's Carryout Stores Cash Receipts Schedule* November December January February March Sales Credit sales Cash sale's _one month after sale* Two months after sale* Total cash receipts 10 $
