Harry\'s Carryout Stores has eight locations. The firm wishes to expand by two m

Question

Harry'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:

Cash at the beginning of January is $82,000, and the minimum desired cash balance is $77,000.

Prepare a schedule of monthly cash budget with borrowings and repayments for January, Feb., and March

                                        January           February          March

Total cash receipts:   $258750          $297500         $335000

Total cash payment:    276600            300500            319000

Net cash flow:               (17850)           (3000)               16000

Beginning cash             82000              77000              77000  

balance       

Cumulative cash         64150             74000                93000

balance

Monthly loan or           12850              3000                  ?_____       Dont know how to compute the number:(

repayment  

Cumulative loan          12850             15850                     0

balance

Ending cash                77000              77000                ?_____

balance

Harry'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:

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