Jaydens 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 firms 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 months 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.

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.

Note: Input all amounts as positive. Leave no cells blank be certain to enter 0 wherever required.

c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March.

Note: Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $0. Leave no cells blank be certain to enter 0 wherever required.

\begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Jayden's Carryout Stores } \\ \hline \multicolumn{6}{|c|}{ Cash Receipts Schedule } \\ \hline & November & December & January & February & March \\ \hline \multicolumn{6}{|l|}{ Sales } \\ \hline \multicolumn{6}{|l|}{ Credit sales } \\ \hline \multicolumn{6}{|l|}{ Cash sales } \\ \hline \multicolumn{6}{|l|}{ One month after sale } \\ \hline \multicolumn{6}{|l|}{ Two months after sale } \\ \hline Total cash receipts & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Jayden's Carryout Stores } \\ \hline \multicolumn{3}{|c|}{ Cash Payments Schedule } \\ \hline & \multicolumn{1}{|c|}{ January } & February & March \\ \hline Payments for purchases & & & \\ \hline Labor expense & & & \\ \hline Selling and administrative & & & \\ \hline Overhead & & & \\ \hline Taxes & & & \\ \hline Dividends & & & \\ \hline Total cash payments & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{5}{|c|}{ Jayden's Carryout Stores } \\ \hline \multicolumn{4}{|c|}{ Cash Budget } \\ \hline Total cash receipts & & February & March \\ \hline Total cash payments & & & \\ \hline Net cash flow & & & \\ \hline Beginning cash balance & & & \\ \hline Cumulative cash balance & & & \\ \hline Monthly loan (or repayment) & & & \\ \hline Ending cash balance & & & \\ \hline Cumulative loan balance & & & \\ \hline \end{tabular}