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:

ActualForecastAdditional InformationNovember$$200,000$January$$280,000$April forecast$$330,000$December$220,000$February$320,000$March$340,000$

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.$

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

Jim Daniels Health ProductsCash Receipts Schedule$$NovemberDecemberJanuaryFebruaryMarchAprilSales$ $ $ $ $ $ Credit salesCash salesCollections in the month after credit sales$$Collections two months after credit sales$$Total cash receipts$$$ $ $ $$

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

Jim Daniels Health ProductsCash Payments Schedule$$JanuaryFebruaryMarchPayments for purchases$ $ $ Labour expenseSelling and administrative expenseOverheadTaxes$$Dividends$$Total cash payments$ $ $

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

Note: Omit $ sign in your response. Do not leave any empty spaces; input a $0$ wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign.

Jim Daniels Health ProductsCash Budget$$JanuaryFebruaryMarchTotal cash receipts$ $ $ Total cash paymentsNet cash flowBeginning cash balanceCumulative cash balanceMonthly loan or $($repayment$)$Cumulative loan balanceEnding cash balance$ $ $