b. Prepare a schedule of monthly cash payments for January, February and March.Payments for purchases.Labour expenseSelling and administrative expenseOverheadTaxesDividendsTotal cash paymentsTotal cash receiptsTotal cash paymentsJim Daniels Health ProductsCash Payments ScheduleJanuary$Net cash flowBeginning cash balance.c. Prepare a schedule of monthly cash budget with borrowings and repayments for January, February and March. (Do not leave anyempty spaces; input a 0 wherever it is required. Negative answers and amounts to be deducted should be indicated by a minussign.)Cumulative cash balanceMonthly loan or (repayment)Cumulative loan balanceEnding cash balanceJim Daniels Health ProductsCash BudgetJanuary$$February$February$March$March$$ Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr.Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January throughMarch. Following are actual and forecasted sales figures:ActualNovemberDecemberSalesCredit salesCash salesForecast$480,000 January500,000 FebruaryMarchOf the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in themonth after sale and 70 percent are paid in the second month after the sale. Materials cost 30 percent of sales and are purchased andreceived each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they arereceived. Labour expense is 50 percent of sales and is paid in the month of sales. Selling and administrative expense is 5 percent ofsales and is also paid in the month of sales. Overhead is $39,000 in cash per month; amortization expense is $11,400 per month. Taxesof $9,300 will be paid in January and dividends of $2,500 will be paid in March. Cash at the beginning of January is $108,000 and theminimum desired cash balance is $103,000.a. Prepare a schedule of monthly cash receipts for January, February and March.Additional Information$560,000 April forecast$610,000600,000620,000Total cash receiptsCollections in the month after credit salesCollections two months after credit salesJim Daniels Health ProductsCash Receipts ScheduleNovemberDecember$$$January$February$$$March$April

Cash BudgetA cash budget is a financial planning instrument that assists individuals, corporations,…

Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr. Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. Following are actual and forecasted sales figures: Actual November December Sales Credit sales Cash sales $480,000 January 500,000 February March Forecast Additional Information $560,000 April forecast $610,000 600,000 620,000 Of the firm'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 sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expense is 50 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 $39,000 in cash per month; amortization expense is $11,400 per month. Taxes of $9,300 will be paid in January and dividends of $2,500 will be paid in March. Cash at the beginning of January is $108,000 and the minimum desired cash balance is $103,000. a. Prepare a schedule of monthly cash receipts for January, February and March. Total cash receipts Collections in the month after credit sales Collections two months after credit sales Jim Daniels Health Products Cash Receipts Schedule November December $ $ January $ February $ March April

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q