Problem 4-25 Complete cosh budget [LO4-2] Harry's Carryout Stores has eight locations The firm wishes to expand by two more stores and needs a bank loan to do this Mr Wilson, the banket will finance construction of the fum can present an acceptable three month financial plan for January through March. The following are actuai and forecast sales figures Forecast Additional formation November 5220, on January $300,000 April forecast $350,000 December 240.000 February 340, March 500,000 of the firm's sales. 50 percent are for cash and the remaining 50 percent are on credit or credit seles, 25 percentare paid in the month after sale and 75 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 months expected sales Materials are paid for in the month after they are received. Labor expense is 30 percent of sales and is paid for in the month of sales Selling and administrative expense is 10 percent of sales and is paid in the month of sales Overhead expense is $28.500 in cash per month Depreciation expense is $10,100 per month Taxes of $8.100 will be paid in January, and dividends of $2,500 will be paid in March Cash at the beginning of January is $82.000, and the minimum desired cash balance is $77,000 6. Prepare a schedule of monthly cash receipts for January February, and March Harry's Carryout Stores Cash Receipts Schedule November December January 5 220,000 5 240 000 5 300 000 s February 340.000 March 350,000 Sales Cradt a Cash sales One month atur sale Two months atter sale Total cash receipts S 05