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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 November December Forecast Additional Information $260,000 January $400,000 April forecast $400,000 340,000 February 440,000 March 410,000 Of the firm's sales, 60 percent are for cash and the remaining 40 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 20 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 $31,000 in cash per month. Depreciation expense is $10,600 per month. Taxes of $8,600 will be paid in January, and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000, and the minimum desired cash balance is $87,000. a. Prepare a schedule of monthly cash receipts for January, February, and March. Harry's Carryout Stores Cash Receipts Schedule

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 November December Forecast Additional Information $260,000 January $400,000 April forecast $400,000 340,000 February 440,000 March 410,000 Of the firm's sales, 60 percent are for cash and the remaining 40 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 20 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 $31,000 in cash per month. Depreciation expense is $10,600 per month. Taxes of $8,600 will be paid in January, and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000, and the minimum desired cash balance is $87,000. a. Prepare a schedule of monthly cash receipts for January, February, and March. Harry's Carryout Stores Cash Receipts Schedule

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. Prepare a schedule of monthly cash receipts for January, February, and March. Harry's Carryout Stores Cash Receipts Schedule November December January February March Sales Credit sales Book Cash sales Print One month after sale Two months after sale erences Total cash receipts 이 $
Transcribed Image Text:a. Prepare a schedule of monthly cash receipts for January, February, and March. Harry's Carryout Stores Cash Receipts Schedule November December January February March Sales Credit sales Book Cash sales Print One month after sale Two months after sale erences Total cash receipts 이 $
3:08 PM C Homepage - Chegg Writir X WIx Free Website Builder | Cre x O Pokemon Sword and Shi X E FIN3403-Financial Mana X O Question 5 - Chapter 4 H X b Answered: What are the X + -> i ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252F Chapter 4 Homework Save & Exit Saved Help Submlt Check my work 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: 1.66 Actual November December Forecast Additional Information $260,000 January 340,000 February March $400,000 April forecast 440,000 410,000 points $400,000 еВok Of the firm's sales, 60 percent are for cash and the remaining 40 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 20 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 percent of sales and is paid in the month of sales. Overhead expense is $31,000 in cash per month. Print References Depreciation expense is $10,600 per month. Taxes of $8,600 will be paid in January, and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000, and the minimum desired cash balance is $87,000. a. Prepare a schedule of monthly cash receipts for January, February, and March. Harry's Carryout Stores Cash Receipts Schedule Mc Graw Hill < Prev 5 of 6 H Next >
Transcribed Image Text:3:08 PM C Homepage - Chegg Writir X WIx Free Website Builder | Cre x O Pokemon Sword and Shi X E FIN3403-Financial Mana X O Question 5 - Chapter 4 H X b Answered: What are the X + -> i ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252F Chapter 4 Homework Save & Exit Saved Help Submlt Check my work 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: 1.66 Actual November December Forecast Additional Information $260,000 January 340,000 February March $400,000 April forecast 440,000 410,000 points $400,000 еВok Of the firm's sales, 60 percent are for cash and the remaining 40 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 20 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 percent of sales and is paid in the month of sales. Overhead expense is $31,000 in cash per month. Print References Depreciation expense is $10,600 per month. Taxes of $8,600 will be paid in January, and dividends of $5,000 will be paid in March. Cash at the beginning of January is $92,000, and the minimum desired cash balance is $87,000. a. Prepare a schedule of monthly cash receipts for January, February, and March. Harry's Carryout Stores Cash Receipts Schedule Mc Graw Hill < Prev 5 of 6 H Next >
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