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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.

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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: November December Forecast Additional Information $350,000 January $450,000 April forecast $510.ece 0.000 February 500.000 March 520,000 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 40 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 35 percent of sales and is paid in the month of sales. Selling and administrative expense is 6 percent of sales and is also paid in the month of sales. Overhead is $32,500 in cash per month, Andortization expense is $10.900 per month. Taxes of $8.900 will be paid in January and dividends of $6,500 will be paid in March. Cash at the beginning of January is $98,000, and the minimum desired cash balance is $93.000. .. Prepare a schedule of monthly cash receipts for January, February and March i Daniels Health Products Cash Receipts Schedule December January Sales Credit sales collections in the month after credit sales Collections to this after credit sales Total cash rects b. Prepare a schedule of monthly cash payments for January, February and March Si Daniels Health Products Cash Payants Schedule Payments for purchases Labour expense Selling and dinistrative expense Overhead Taxes Dividends Total cash payants c. Prepare a schedule of monthly cash budget with borrowings and repayments for January February and March (Do not leave any empty spaces input a wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign) Ho Dantels Health Products Total cash receipts Total cap beginning cash balance C ative cash balance lative loan balance Ending cash balance

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