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 November $460,000 January December 480,000 February March Additional Information $540,000 April forecast $500,000 580,000 600,000 Of the firm's sales, 30 percent are for cash and the remaining 70 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 30 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. Labour expense is 50 percent of sales and is paid in the month of sales. Selling and administrative expense is 4 percent of sales and is also paid in the month of sales. Overhead is $31,000 in cash per month, Amortization expense is $11,300 per month. Taxes of $9,200 will be paid in January and dividends of $2,000 will be paid in March. Cash at the beginning of January is $106,000, and the minimum desired cash balance is $101,000. a. Prepare a schedule of monthly cash receipts for January, February and March. Jin Daniels Health Products Cash Receipts Schedule Sales Credit sales Cash sales Collections in the month after credit sales after credit sales Collections two months $ November 460000 322000 December January February $ 480000 $ 540000 S 580000 March $ 600000 336000 378000 406000 130000) 144000 162000 1/4000 420000 180000 April $ 590000 413000 177000 64400 67200 75600 81200 112600 225400 235200 264600 284200)