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Sowed Help Save & Et Check my Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a

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Sowed Help Save & Et Check my 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 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 5580,000 January 5666,000 April forecast $530,000 December 500,000 February 700,000 March 540,000 Of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 40 percent are paid in the month after sale and 50 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 month's 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 20 percent of sales and is paid in the month of sales. Overhead expense is $26,000 in cash per month Depreciation expense is $11.900 per month. Toxes of $9.900 will be paid in January, and dividends or $11,500 will be paid in March. Cash at the beginning of January is $118,000, and the minimum desired cash balance is $112.000 a. Prepare a schedule of monthly cash receipts for January February, and March Harry's Caryout Stores Cash Receipts Schedule November December January February March 10 Depreciation expense is $11,900 per month Taxes of $9,900 will be paid in January, and dividends of $11,500 will be paid in March Cash at the beginning of January is $118,000, and the minimum desired cash balance is $113,000 a. Prepare a schedule of monthly cash receipts for January, February, and March Ints Harry's Carryout Stores Cash Receipts Schedule December January ook November February March Sales Credit salos Cash sales One month after sale Two months after sale Total cash receipts 5 05 05 b. Prepare a schedule of monthly cash payments for January February, and March b. Prepare a schedule of monthly cash payments for January, February, and March Harry's Carryout Stores Cash Payments Schedule January February March -Book Prire Payments for purchases Labor expense Soling and administrative Overhead Taxes Dividends Total cash payments 5 0 05 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 balance is $0.) Book February March Harry's Carryout Stores Cash Budget January Total cash receipts Total cash payments Not cash flow 0 Beginning cash balance Cumulative cash balance 0 Monthly loan (or repayment) Ending cash balance 0 Cumulative loan balance 0 O 0 0 0

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