Don't give answer in image format b. Prepare a schedule of monthly cash payments for January, February and MarchJin Daniels Health ProductsCash Payments SchedulePayments for purchasesLabour expenseSelling and administrative expenseOverheadTaxesDividendsTotal cash paymentsTotal cash receiptsTotal cash paymentsNet cash flowBeginning cash balance -January$1520003040030500Cumulative cash balanceMonthly loan or (repayment)Cumulative loan balanceEnding cash balanceJin Daniels Health ProductsCash BudgetJanuaryFebruaryc. Prepare a schedule of monthly cash budget with borrowings and repayments for January, February and March. (Do not leave anyempty spaces: input a O wherever it is required. Negative answers and amounts to be deducted should be indicated by a minussign.)1680003360030500FebruaryMarch$March1760003520030500 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:ForecastActualNovember$300,000 JanuaryDecember 320,000 FebruaryMarchAdditional Information$300,000 April forecast $430,000420,000440,000of the firm's sales, 30 percent are for cash and the remaining 70 percent are on credit. Of credit sales, 20 percent are paid in themonth after sale and 80 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 40 percent of sales and is paid in the month of sales. Selling and administrative expense is 8 percent ofsales and is also paid in the month of sales. Overhead is $30,500 in cash per month amortization expense is $10.500 per monthTaxes of $8.500 will be paid in January and dividends of $4,500 will be paid in March. Cash at the beginning of January is $90.000and the minimum desired cash balance is $85.000.a. Prepare a schedule of monthly cash receipts for January, February and MarchSalesCredit alesCash salesCollections in the month after credit salesCollections two months after credit salesTotal cash receiptsin Daniels Health ProductsCash Receipts ScheduleNovember300000210000December$120000900002240001600043000January34000026600011400044800354000February$4200002940000600053200304000March440000[30000013200058800336000$April$43000030100012900061600353000

An organization's anticipated cash inflows and outflows for a certain time, usually a month or a…

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 Forecast November December $300,000 January 320,000 February March Sales Credit sales Cash sales of the firm's sales, 30 percent are for cash and the remaining 70 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 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 40 percent of sales and is paid in the month of sales. Selling and administrative expense is 8 percent of sales and is also paid in the month of sales Overhead is $30,500 in cash per month amortization expense is $10.500 per month Taxes of $8.500 will be paid in January and dividends of $4,500 will be paid in March. Cash at the beginning of January is $90.000 and the minimum desired cash balance is $85.000 a. Prepare a schedule of monthly cash receipts for January, February and March Additional Information $300,000 April forecast $430,000 420,000 440,000 Collections in the month after credit sales Collections two months after credit sales Total cash receipts in Daniels Health Products Cash Receipts Schedule Novenber December $300000 $320000 90000 224000 600D 42000 January 340000 266000 114000 44800 256000 February $420000 294000 16000 53200 304000 March 440000 300000 132000 58800 336000 April 430000 301000 129000 61600 353000

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q