Mary and Kay, Inc., a distributor of cosmetics throughout Florida, Is In the process of assembling a cash budget for the first quarter of 20x1. The following Information has been extracted from the company's accounting records: . All sales are on account Sixty percent of customer accounts are collected in the month of sale; 35 percent are collected in the following month. Uncollectibles amounting to 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1. Seventy percent of the merchandise purchases are paid for in the month of purchase; the remaining 30 percent are paid for in the month after acquisition. The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $20,000; accounts recelvable, $55,000; and accounts payable, $22,000. Mary and Kay, Inc., maintains a $20,000 minimum cash balance at all times. Financing is available and retired) in $1,000 multiples at an 8 percent Interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time. Additional data: Sales revenue Merchandise purchases Cash operating costs Proceeds from sale of equipment January $150,000 90, eee 31,000 February $180,000 100, eee 24,00 March $185,000 140,eee 45,000 5,800 Required: 1. Prepare a schedule that discloses the firm's total cash collections for January through March. 2. Prepare a schedule that discloses the firm's total cash disbursements for January through March. 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule that summarizes the firm's financing cash flows for January through March. January S 20,000 February 20.000 $ S Beginning cash balance Total receipts Subtotal Less: Total disbursements 101.000 121,000 110,000 S March 44.700 X 179,000 223,700 173,000 50.700 180,500 180,500 121,000 IS S > S 5.000 IS 59,500 S > 15,000 0 Cash excess (deficiency) before financing Financing Borrowing to maintain $20,000 balance Loan principal repaid Loan interest paid Ending cash balance 0 0 (15.000) 200 O >>> 0 0 > 0 S 20.000 IS 44,700 s 50.700