Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Me Hewitt, the banker, wil 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 itional Information November 5580,000 Tamary $160,000 April Forecast 5710,000 December 60,00 February 200,000 Ranch 720,000 of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales 30 percentare 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 suffident 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 7 percent of sales and is also paid in the month of sales Overhead is $40,000 in cash per month, amortization expense is $11.900 per month Taxes of $9.800 will be paid in January and dividends of $5,000 will be paid in March Cash at the beginning of January's $118,000 and the minimum desired cash balance is $113,000 a. Prepare a schedule of monthly cash receipts for January, February and March Jis bains Health Products Cash Recent Schedule ber December Sales 5 Credit sales Gash sales Collections in the month after credit sales Collections the months after credit sales Total cash receipts 5 b. Prepare a schedule of monthly cash payments for January February and March His Danielt Falth Products Cash Payments Schedule January Februar Payments for purchases $ Labour expense Selling and dinistrative expense Overhead Tavas Dividends Totalcah payants c. Prepare a schedule of monthly cash budget with borrowings and repayments for January February and March (Do not leave any empty spaces Inpute o wherever It le required. Negative answers and amounts to be deducted should be indicated by a minus sign) Cash at Total cash receipts Total catch pants et cach to c. Prepare a schedule of monthly cash budget with borrowings and repayments for January, February and March (Do not leave any empty spaces: Input ao wherever it is required. Negative answers and amounts to be deducted should be Indicated by a minus sign.) Cash Hut Febri Total cash receipts Yotal cash et cash flow Beginning cash balance Cumulative a balance Monthly loan or Creat) Cumulative loan balance Indisha