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KoolKiwi, a local fruit retailer is experiencing very strong sales growth across its 3-store network, and management has decided to add a 4th location. The company currently has no debt, but management realizes that due to seasonal cash flow fluctuations, the set-up of a new store will require a short-term bank loan until the store is fully operation. The finance manager, Jonah, compiled the following financial information for the next 3 months to show its bank manager. Sales Forecast: Actual Sales Forecast Sales November 220,000 December 240,000 January 300,000 February 340,000 March 360,000 April 350,000 Cash collection:Cash collection: 0 30% axe for cash and the remaining 70% are on credit 0 0f the credit sales, 25% of customers pay in the month after the sale 0 75% are paid in the second month after the sale my \"my Payments for Purchases 120,000 136,000 Labour Expense 102,00 108,000 Selling & Admin. Expense 13,600 14,400 Cash payments Forecast: Taxes 8,100 Dividends TOTAL Cash Payments Other nancial highlights: Gross Margins 60% of sales Labour expense 30% of sales Selling & Administrative expense 4% of sales Fixed overhead Amortization Income taxes to be paid in January Dividends to be paid in March Cash at the beginning of January Minimum desired cash balance REQUIRED: Use the templates provided for each response a. Prepare a schedule for the monthly cash receipts for January, February and March. b. Prepare a schedule of monthly cash budget with borrowings and repayments for Januaiy, February and March. QUESTION: What is the maximum draw down in the credit facility that KoolKiwi would have to make based on the forecasts? When will the loan facility be fully paid down? EXAMPLES OF THE CASH RECEIPT SCHEDULE 8: MONTLY CASH BUDGET ARE PROVIDED, PLEASE USE THESE TEMPLATES TO SET UP YOUR ANSWERS: Cash Receipt Schedule Fill in the forecast for March Credit Sales Cash Sales Collection in the month after credit sales TOTAL cash receipts Monthly Cash Budget Fill in the forecast for 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