the ? - Jim Daniels Health Products has eight stores. The frm wants to expand by two more stores and needs a bank loan to. Mr. Hewitt, the banker, will fnance construction if the frm can present an acceptable three?month fnancial plan for January through March. Following are actual and forecasted sales fgures: Actual Forecast Additional Information November 3 of 4 10/19/20 $200,000 January $280,000 April forecast $330,000 December 220,000 February 320,000 March 340,000 Of the frm'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 30 percent of sales and are purchased and received each month in an amount suffcient to cover the following month's expected sales. Materials are paid for in the month after they are received. Labour expense is 40 percent of sales and is paid in the month of sales. Selling and administrative expense is 5 percent of sales and is also paid in the month of sales. Overhead is $28,000 in cash per month; Amortization expense is $10,000 per month. Taxes of $8,000 will be paid in January and dividends of $2,000 will be paid in March. Cash at the beginning of January is $80,000 and the minimum desired cash balance is $75,000.

Solution below can you explain how they got those numbers for the ones that are highlighted in pink please

December January February March Taxes 14,000 Pham Dividends 2.000 7140 Total cash payments" 5246,000 $268,000 $291,000 *84.000 = 280,000 x 30%% $112,000 - 280,000 x 40% #14,000 - 280,000 x 5% * The $10,000 of amortization is excluded because it is not a cash expense. Question data revised to $40,000 overhead per month and taxes of $14,000 for January. Loan (Repayment) Schedule January February March Total cash receipts $235.600 $270.800 $31 1.200 Total cash payments 246,000 268.000 291,000 Net cash flow (10.400) 2.800 20.200 Beginning cash balance 75 80.000 75,000 75.000 Cumulative cash balance 69 600 77,800 95.200 Monthly loan or (repayment) 5.400 (2,800) (2.6001 Cumulative loan balance 5.401 2,600 Ending cash balance 5 75.000 $ 75,000 $ 92,6004-29. Jim Daniels Health Products Cash Budget January - March Cash Receipts Schedule November December January February March April Sales $200,0 00 $220,000 $280.000 $320,000 $340,000 5330.000 Credit sales (60%) 120,000 132.000 168,000 192,000 204.000 198,000 Collections: Cash sales (40%) 80.000 88.000 1 12,000 128.000 136.000 132,000 30% credit sales collected next Yo. 3 39.600 50.400 CAT $7.600 61.200 month 36,0001 70% credit sales 142,606 167 collected 2 months 84,000 92,400 117,600 134,400 later Total cash receipts $235.600 $270,800 $311,200 "$36,000 = 120,000 x 30% 50,4out $84,000 =12000*7036 "$235,600 = 112,000 + 39,600 + 84,000 + 57 400 + 13 6,60 Cash Payments Schedule December January February March Purchased Material Cost" $ 66.000 $ 84.000 $ 96,000 $102.000 Purchase Paid the following month 66.000 84,000 $ 96.000 Labour expense (40% of sales) - 112.000 128.000 136,000 14,000% 370 060 YO05 3-jow70.05 Selling and admin. expense (5% of 16.000 17.000 sales) 40,000 Overhead 40.000 40.000