Jayden$$s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mrs$.$ 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 $ $260,000$ January $ $400,000$ April forecast $ $400,000$

December $340,000$ February $440,000$

March $410,000$

Of the firm$$s sales, $60$ percent are for cash and the remaining $40$ percent are on credit. Of credit sales, $20$ percent are paid in the month after sale and $80$ percent are paid in the second month after the sale. Materials cost $20$ percent of sales and are purchased and received each month in an amount sufficient to cover the following month$$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 $15$ percent of sales and is paid in the month of sales. Overhead expense is $$31,000$ in cash per month.

Depreciation expense is $$10,600$ per month. Taxes of $$8,600$ will be paid in January, and dividends of $$5,000$ will be paid in March. Cash at the beginning of January is $$92,000,$ and the minimum desired cash balance is $$87,000.$