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: Actual November Forecast Additional Information $540,000 January 560,000 February March $620,000 April forecast 660.000 520,000 $510,000 December Of the firm's sales, 30 percent are for cash and the remaining 70 percent are on credit. 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 35 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 45 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 $20,000 in cash per month. Depreciation expense is $11,700 per month. Taxes of $9,700 will be paid in January, and dividends of $10,500 will be paid in March. Cash at the beginning of January is $114,000, and the minimum desired cash balance is $109,000. 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.) Answer is not complete. Harry's Carryout Stores Cash Payments Schedule January February March 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 $ 490,500 517,900 S 507,400 (495,500) (5,000) 517.900 507,400 114,000 109,000 507,400 109,000 626,900 0 109,000 626,900 507,400