March. The following are actual and forecast sales figures: Actual Forecast Additional Information November $420,000 January $500,000 April forecast $450,000 December 440,000 February 540,000 March 460,000 of the firm's sales, 40 percent are for cash and the remaining 60 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 25 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. Labor expense is 40 percent of sales and is paid for in the month of sales. Selling and administrative expense is 20 percent of sales and is paid in the month of sales. Overhead expense is $33,500 in cash per month Depreciation expense is $11,100 per month. Taxes of $9,100 will be paid in January, and dividends of $7,500 will be paid in March Cash at the beginning of January is $102,000, and the minimum desired cash balance is $97,000. a. Prepare a schedule of monthly cash receipts for January, February, and March Harry's Carryout Stores Cash Receipts Schedule December January February March November Sales Credit salos Cash sales One month after sale Two months after sale Total cash receipts 5 ols 0 $ b. Prepare a schedule of monthly cash payments for January, February, and March Harry's Carryout Stores Cash Payments Schedule January February March Payments for purchases Labor expense Selling and administrative Overhead Taxes Dividends Total cash payments $ 0 $ 0$ 0 c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March. (Negative amounts should be Indicated by a minus sign. Assume the January beginning loan bala ce is $0.) Harry's Carryout Stores Cash Budget January February March c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March. (Negative amounts should be indicated by a minus sign. Assume the January beginning loon balance is $0.) Harry's Carryout Stores Cash Budget January February March 0 0 0 Total cash receipts Total cash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly loan (or repayment) Ending cash balance Cumulative loan balance 0 0 0 0 0 0 Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March April May $55,000 61,000 50,000 59,000 67,000 69,000 June July August ook SK net rences Sales in January and February were $58,000 and $57,000, respectively, Experience has shown that of total sales, 10 percent are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August Watt's Lighting Stores Cash Receipts Schedule March April 56,0001 16,500 May June July January February $ 58,000 $ 57,000 $ $ August Credit sales In month of sale One month aftersale Two months after sale Total cash receipts $ 16,500 $ 0$ 0 s os o$