Maurice Tutor

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About Maurice Tutor

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Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Jul 2017 My Price 12.00

arry’s Carryout Stores

arry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. 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 forecasted sales figures:arry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. 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 forecasted sales figures:     

Actual

  

Forecast

  

Additional Information

  November

$ 350,000

  

January

$ 580,000

  

April forecast

$ 490,000

  December

520,000

  

February

620,000

      
     

March

500,000

      
 

    

Of the firm’s sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 40 percent are paid in the month after sale and 60 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 40 percent of sales and is paid for in the month of sales. Selling and administrative expense is 20 percent of sales and is also paid in the month of sales. Overhead expense is $35,500 in cash per month.

    

     Depreciation expense is $11,500 per month. Taxes of $9,500 will be paid in January, and dividends of $9,500 will be paid in March. Cash at the beginning of January is $110,000, and the minimum desired cash balance is $105,000.

    

a.

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

    

Harry’s Carryout Stores
Cash Receipts Schedule
 

November

December

January

February

March

  Sales

$

$

$

$

$

  Credit sales

          

  Collections:

          

     Cash sales

    

$

$

$

     One month after sale

        

     Two months after sale

        
           

  Total cash receipts

    

$

$

$
           
 

 

b.

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

     

Harry’s Carryout Stores
Cash Payments Schedule
 

January

February

March

      

  Payments for purchases

$

$

$

      

  Labor expense

            

  Selling and administrative

            

  Overhead

            

  Taxes

            

  Dividends

            
             

  Total cash payments

$

$

$

      
             
 

    

c.

Prepare a monthly cash budget with borrowings and repayments for January, February, and March.(Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $0.)

     

Harry’s Carryout Stores

Cash Budget
 

December

January

February

March

  Total cash receipts

  

$

$

$

  Total cash payments

        
         

  Net cash flow

  

$

$

$

  Beginning cash balance

        
         

  Cumulative cash balance

  

$

$

$

  Monthly loan (repayment)

        
         

  Ending cash balance

  

$

$

$
         

  Cumulative loan balance

$

$

$

$
 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jul 2017 09:07 PM My Price 12.00

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