Mary and Kay. Inc., a distributor of cosmetics throughout Florida, Is In the process of assembling a cash budget for the first quarter of 20xi. 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 receivable. $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: January February $150,eee $180, eee $185,eee 148,eee Cash operating costs March Sales revenue Merchandise purchases 90,eee 31,eee 182.ee 24,690 Proceeds from sale of equipment 45,000 5.ee 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 February March Beginning cash balance S 20,000 $ 100.000 $ 43.233 Total receipts 101.000 160,500 179,000 Subtotal Is 121.000 $ 260,500 s 222,233 Less: Total disbursements (116,000) (121.000) (173,000) Cash excess (deficiency) before financing S 5,000 139,500 49,233 Financing Borrowing to maintain $20,000 balance 95,000 $ 0 Loan principal repaid 95,000 Loan interest paid 0 1,287 Ending cash balance $ 100,000 $ 43.233 49,233
