Saved Hel 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: Actual Forecast Additional Information November $440,008 January $520,000 April forecast $570,000 December 460.000 February 560,000 March 580,000 of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales. 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 50 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expense is 30 percent of sales and is paid in the month of sales. Selling and administrative expense is 4 percent of sales and is also paid in the month of sales. Overhead is $40,000 in cash per month: Amortization expense is $11,200 per month. Taxes of $8,000 will be paid in January and dividends of $8,000 will be paid in March. Cash at the beginning of January is $104,000, and the minimum desired cash balance is $99,000, . Prepare a schedule of monthly cash receipts for January, February and March Jim Daniels Health Products Cash Receipts Schedule December January $ $ November $ February March April Credit sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts Prev 1 of 2 Next > b. Prepare a schedule of monthly cash payments for January, February and March. February $ March $ Jim Daniels Health Products Cash Payments Schedule January Payments for purchases $ Labour expense Selling and administrative expense Overhead Taxes Dividends Total cash payments c. Prepare a schedule of monthly cash budget with borrowings and repayments for January, February and March. (Do not leav empty spaces; input a O wherever it is required. Negative answers and amounts to be deducted should be indicated by an sign.) Jim Daniels Health Products Cash Budget January $ February March $ VA Total cash receipts Total cash payments tiet cash flow Beginning cash balance Cumulative cash balance Monthly loan or Crepayment) Cumulative loan balance Prey 1 of 2 Next > Saved The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $250,000 193,400 $ 56,600 3,600 $ 53,000 13,000 $ 40,000 $ 22,000 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Shareholders' Equity $10,000 Accounts payable $17,600 26,000 Accrued wages 2,800 29,000 Accrued taxes 14,689 565,000 Current liabilities $35,000 86,000 Notes payable 8,680 Long-term debt 23,000 Common stock 36,000 Retained earnings 48,400 $151,000 Total liabilities and equity $151,000 Total assets Longbranch is expecting a 25 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of capital assets: Instead, it will be done through more efficient asset utilization in the existing stores. Of liabilities, only current liabilities vary directly with sales. a. Using a percent of sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as itive unlu