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: Actual November December $ 260,000 340,000 Forecast $ 400,000 440,000 410,000 Sales January February March 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. Additional Information. April forecast $ 400,000 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. November Jayden's Carryout Stores Cash Receipts Schedule December January February March
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: Actual November December $ 260,000 340,000 Forecast $ 400,000 440,000 410,000 Sales January February March 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. Additional Information. April forecast $ 400,000 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. November Jayden's Carryout Stores Cash Receipts Schedule December January February March
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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:
Actual
November
December
$ 260,000
340,000
Sales
Credit sales
Forecast
January
February
March
Cash sales
One month after sale
Two months after sale
$ 400,000
440,000
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.
Additional Information
April forecast $ 400,000
November
Jayden's Carryout Stores
Cash Receipts Schedule
December
January
February
March
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