Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr$.$

Hewitt, the banker, will finance construction if the firm can present an acceptable three$-$month financial plan for January through

March. Following are actual and forecasted sales figures:

Of the firm's sales, $40$ percent are for cash and the remaining $60$ percent are on credit. Of credit sales, $30$ percent are paid in the

month after sale and $70$ percent are paid in the second month after the sale. Materials cost $30$ percent of sales and are purchased and

received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are

received. Labour expense is $50$ percent of sales and is paid in the month of sales. Selling and administrative expense is $8$ percent of

sales and is also paid in the month of sales. Overhead is $$38,000$ in cash per month; amortization expense is $$12,100$ per month. Taxes

of $$10,000$ will be paid in January and dividends of $$6,000$ will be paid in March. Cash at the beginning of January is $$122,000$ and the

minimum desired cash balance is $$117,000.$

a$.$ Prepare a schedule of monthly cash receipts for January, February and March.