b. Prepare a schedule of monthly cash payments for January, February, and March.Note: Input all amounts as positive. Leave no cells blank be certain to enter O wherever required.Payments for purchasesLabor expenseSelling and administrativeOverheadTaxesDividendsTotal cash paymentsJayden's Carryout Stores.Cash Payments ScheduleJanuaryTotal cash receiptsTotal cash paymentsNet cash flowBeginning cash balanceCumulative cash balanceMonthly loan (or repayment)Ending cash balanceCumulative loan balance$0 $Jayden's Carryout Stores.Cash BudgetJanuary0c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March.Note: Negative amounts should be Indicated by a minus sign. Assume the January beginning loan balance is $0. Leave no cellsblank be certain to enter O wherever required.0February0February000 $0MarchMarch00< Prex5 of 5Next Jayden's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mrs.Wilson, the banker, will finance construction If the firm can present an acceptable three-month financial plan for January throughMarch. The following are actual and forecast sales figures:NovemberDecemberActualSalesCredit sales$ 540,000 January560,000 FebruaryMarchof the firm's sales, 30 percent are for cash and the remaining 70 percent are on credit. Of credit sales, 35 percent are paid in themonth after sale and 65 percent are paid in the second month after the sale. Materials cost 35 percent of sales and are purchased andreceived each month in an amount sufficient to cover the following month's expected sales. Materials are paid for in the month afterthey are received. Labor expense is 45 percent of sales and is paid for in the month of sales. Selling and administrative expense is 10percent of sales and is paid in the month of sales. Overhead expense is $20,000 in cash per month.ForecastDepreciation expense is $11,700 per month. Taxes of $9,700 will be paid in January, and dividends of $10,500 will be paid in March.Cash at the beginning of January is $114,000, and the minimum desired cash balance is $109,000.a. Prepare a schedule of monthly cash receipts for January, February, and March.Cash salesOne month after saleTwo months after saleTotal cash receiptsAdditional Information$ 620,000 April forecast$ 510,000660,000520,000NovemberJayden's Carryout Stores.Cash Receipts ScheduleDecember$January0 $Februaryfor January February and March0 $March0

The cash budget is financial report prepared under budgeting that represents an estimation of cash…

Jayden's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mrs. 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: November December Actual $ 540,000 January 560,000 February March Forecast Additional Information $ 620,000 April forecast $ 510,000 660,000 520,000 Of the firm's sales, 30 percent are for cash and the remaining 70 percent are on credit. Of credit sales, 35 percent are paid in the month after sale and 65 percent are paid in the second month after the sale. Materials cost 35 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 45 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 $20,000 in cash per month. Depreciation expense is $11,700 per month. Taxes of $9,700 will be paid in January, and dividends of $10,500 will be paid In March. Cash at the beginning of January is $114,000, and the minimum desired cash balance is $109,000. a. Prepare a schedule of monthly cash receipts for January, February, and March. November Jayden's Carryout Stores. Cash Receipts Schedule December January February March

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 13P