Homework: Financial Forecasting and Leverage Assignment

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$10$ a$.$ Prepare a schedule of monthly cash receipts for January, February, and March.

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$\backslash$table$[[$Cayden$\text{'}$s Carryout Stores.$],[,$November,December,January,February,March,$],[$Sales$,,,,,,],[$Credit sales,,,,,,$],[$Cash sales,,,,,,$],[$One month after sale,,,,,,$],[$Two months after sale,,,,,,$],[$Total cash receipts,,,,,,$]]$

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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 $0$ wherever required.

$\backslash$table$[[$Jayden$\text{'}$s Carryout Stores.,$],[$Cash Payments Schedule$],[,$January,February,March$],[$Payments for purchases,,,$],[$Labor expense,,,$],[$Selling and administrative,,,$],[$Overhead$,,,],[$Taxes$,,,],[$Dividends$,,,],[$Total cash payments,,,$]]$ 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 Forecast Additional Information

November $ $600,000$ January $ $680,000$ April forecast $ $540,000$

December $620,000$ February $720,000$

March $550,000$

Of the firm$$s sales, $50$ percent are for cash and the remaining $50$ percent are on credit. Of credit sales, $50$ percent are paid in the month after sale and $50$ percent are paid in the second month after the sale. Materials cost $30$ percent of sales and are purchased and received each month in an amount sufficient to cover the following month$$s expected sales. Materials are paid for in the month after they are received. Labor expense is $40$ percent of sales and is paid for in the month of sales. Selling and administrative expense is $20$ percent of sales and is paid in the month of sales. Overhead expense is $$38,000$ in cash per month.

Depreciation expense is $$12,000$ per month. Taxes of $$10,000$ will be paid in January, and dividends of $$12,000$ will be paid in March. Cash at the beginning of January is $$120,000,$ and the minimum desired cash balance is $$115,000.$

Prepare a schedule of monthly cash receipts for January, February, and March.

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 $0$ wherever required.

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 cells blank be certain to enter $0$ wherever required.