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: Actual Forecast $330,000 Additional Information November $200,000 January $280,000 April forecast December 220,000 February March 320,000 340,000 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 40 percent of sales and is paid in the month of sales. Selling and administrative expense is 5 percent of sales and is also paid in the month of sales. Overhead is $28,000 in cash per month; amortization expense is $10,000 per month. Taxes of $8,000 will be paid in January and dividends of $2,000 will be paid in March. Cash at the beginning of January is $80,000 and the minimum desired cash balance is $75,000 a. Prepare a schedule of monthly cash receipts for January, February and March. Sales Credit sales Pack rat Dim Daniels Health Products Cash Receipts Schedule November December January February March $ $ $ Navi Check my work 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 40 percent of sales and is paid in the month of sales. Selling and administrative expense is 5 percent of sales and is also paid in the month of sales. Overhead is $28,000 in cash per month; amortization expense is $10,000 per month Taxes of $8,000 will be paid in January and dividends of $2,000 will be paid in March. Cash at the beginning of January is $80,000 and the minimum desired cash balance is $75,000. a. Prepare a schedule of monthly cash receipts for January, February and March. 3in Daniels Health Products Cash Receipts Schedule November December January February riarch $ $ Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts b. Prepare a schedule of monthly cash payments for January, February and March Jim Daniels Health Products fach Daumante Schedule munization experise is 10,000 per month. Il be paid in January and dividends of $2,000 will be paid in March. Cash at the beginning of January is $80,000 esired cash balance is $75,000. ule of monthly cash receipts for January, February and March. the month after credit sales 10 months after credit sales ceipts Jim Daniels Health Products Cash Receipts Schedule November December January $ February $ March Apr 11 $ ule of monthly cash payments for January, February and March. Jim Daniels Health Products $ $ Total cash receipts b. Prepare a schedule of monthly cash payments for January, February and March. Payments for purchases Labour expense Selling and administrative expense Jim Daniels Health Products Cash Payments Schedule January February March $ Overhead Taxes Dividends Total cash payments $ c. Prepare a schedule of monthly cash budget with borrowings and repayments for January, February and March. (Omit $ sie response. Do not leave any empty spaces; input a O wherever it is required. Negative answers and amounts to be deduc should be indicated by a minus sign.) Total cash receipts Total cach naumantr Jim Daniels Health Products Cash Budget January February March $ O Search < Prev 9 of 9 Next LO Dividends Total cash payments c. Prepare a schedule of monthly cash budget with borrowings and repayments for January, February and March. (Omit $ sign in your response. Do not leave any empty spaces; input a O wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign.) Jim Daniels Health Products Cash Budget January $ February March Total cash receipts Total cash payments Net cash flow Beginning cash balance. Cumulative cash balance Monthly loan or (repayment). Cumulative loan balance. Ending cash balance $ < Prev 9 of 9 Next L C a ENG LO C us