Of the firm's sales, $50$ percent are for cash and the remaining $50$ 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 $50$ percent of sales and is paid for in the month of sales. Selling and

administrative expense is $15$ percent of sales and is paid in the month of sales. Overhead expense is $$25,000$ in cash per month.

Depreciation expense is $$11,800$ per month. Taxes of $$9,800$ will be paid in January, and dividends of $$11,000$ will be paid in

March. Cash at the beginning of January is $$116,000,$ and the minimum desired cash balance is $$111,000.$ a$.$ Prepare a schedule of monthly cash receipts for January, February, and March. b$.$ Prepare a schedule of monthly cash payments for January, February, and March.

Note: Input all amounts as positive. Leave no cells blank be certain to enter $0$ wherever required. c$.$ Prepare a monthly cash budget with borrowings and repayments for January, February, and March.

Note: Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $$0.$ Leave no

cells blank be certain to enter $0$ wherever required.

Item $1$

Jayden$$s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mrs$.$ Wilson, the banker, will finance construction if the firm can present an acceptable three$-$month financial plan for January through March. The following are actual and forecast sales figures:

Actual Forecast Additional Information

November $ $560,000$ January $ $640,000$ April forecast $ $520,000$

December $580,000$ February $680,000$

March $530,000$

Of the firm$$s sales, $50$ percent are for cash and the remaining $50$ percent are on credit. Of credit sales, $20$ percent are paid in the month after sale and $80$ percent are paid in the second month after the sale. Materials cost $25$ percent of sales and are purchased and received each month in an amount sufficient to cover the following month$$s expected sales. Materials are paid for in the month after they are received. Labor expense is $50$ percent of sales and is paid for in the month of sales. Selling and administrative expense is $15$ percent of sales and is paid in the month of sales. Overhead expense is $$25,000$ in cash per month.

Depreciation expense is $$11,800$ per month. Taxes of $$9,800$ will be paid in January, and dividends of $$11,000$ will be paid in March. Cash at the beginning of January is $$116,000,$ and the minimum desired cash balance is $$111,000.$