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 forecast sales figures: Actual Forecast Additional Information November $220, eee January $3ee, eee April forecast $350,000 December 24e, eee February 340, eee March 360, eee of the firm's sales, 50 percent are for cash and the remaining 50 percent are on credit. Of credit sales, 25 percent are paid in the month after sale and 75 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 30 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 $28,500 in cash per month Depreciation expense is $10,100 per month Taxes of $8,100 will be paid in January, and dividends of $2,500 will be paid in March Cash at the beginning of January is $82,000, and the minimum desired cash balance is $77,000. a. Prepare a schedule of monthly cash receipts for January, February, and March Harry's Carryout Stores Cash Receipts Schedule December January November February March Sales Credit sales Cash sales One month after sale Two months after sale $ Total cash receipts 0 $ 0 $ 0 b. 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 $ 0 $ 0 $ 0 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.) Harry's Carryout Stores Cash Budget January February March 0 0 Total cash receipts Total cash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly loan (or repayment) Ending cash balance Cumulative loan balance 0 0 0 0 0 0 Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: 28,000 March April May June , 27,5ee 26,eee Wright maintains an ending inventory for each month in the amount of one and one-half times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $5 per unit and are paid for in the month after production. Labor cost is $9 per unit and is paid for in the month incurred. Fixed overhead is $23,000 per month Dividends of $22,200 are to be paid in May. The firm produced 27.000 units in February Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory. Wright Lighting Fixtures Production Schedule March April May June 0 0 Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced 0 0 01 0 Cash Payments February March April May Units produced Material cost Labor cost Fixed overhead Dividends Total cash payments 0 $ 0 $ 0