Corta Block Saved Help Save & Exit Submit 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 January $ 400,000 February 440,000 March 410,000 Additional Information April forecast $ 400,000 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. Sales Credit sales Cash sales One month after sale Two months after sale Jayden's Carryout Stores Cash Receipts Schedule November December January February March
Corta Block Saved Help Save & Exit Submit 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 January $ 400,000 February 440,000 March 410,000 Additional Information April forecast $ 400,000 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. Sales Credit sales Cash sales One month after sale Two months after sale Jayden's Carryout Stores Cash Receipts Schedule November December January February March
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 84PSA
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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
January $ 400,000
February 440,000
March
410,000
Additional Information
April forecast $ 400,000
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.
Sales
Credit sales
Cash sales
One month after sale
Two months after sale
Jayden's Carryout Stores
Cash Receipts Schedule
November
December
January
February
March
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