Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling a cash .2 budget for the rst quarter of

image text in transcribed
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling a cash .2 budget for the rst quarter of 20x1. The following information has been extracted from the company's accounting records:J J \"All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 35 .2 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, 2am, will be recovered and that the recovery will be in January 21]):an \"Seventy percent of the merchandise purchases are paid for in the month of purchase; the remaining .2 30 percent are paid for in the month after acquisition.J -JThe December 31, 20:0, balance sheet disclosed the following selected figures: cash, $20,DDD; .2 accounts receivable, $55,000; and accounts payable, $22,DDD.J \"Mary and Kay, Inc. maintains a $2, minimum cash balance at all times. Financing is available {and .2 retired) in $1,DDD 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 total principal at that time.J \"Additional data:J .2 .4 J JanuaryJ FebruaryJ MarchJ .2 Sales revenueJ $J15U,UDU JSJIEDDD J$J135,DDD-J.2 Merchandise purchasesJ J 90,DDDJ J #140,000 .- JldJJDD- 12 Cash operating costsJ J 31,OODJ J J24,DODJ .- J4D,DODJ J.2 Proceeds from sale of equipmente J J J J J J J 5,DUDJ 9.2 ,3 .J Requiredw a. Prepare a schedule that discloses the firm's total cash collections for January through Ma rchAJ 'J b. Prepare a schedule that discloses the firm's total cash disbursements for January through MarchJJ .'J c. Prepare a schedule that discloses the firm's cash needs, if any, for January through March.\" '4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jamie Pratt, Michael F Peters

11th Edition

1119745322, 978-1119745327

More Books

Students also viewed these Accounting questions

Question

4. What means will you use to achieve these values?

Answered: 1 week ago