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 companys accounting records: All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 30 percent are collected in the following month. Uncollectibles amounting to 10 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. Sixty percent of the merchandise purchases are paid for in the month of purchase; the remaining 40 percent are paid for in the month after acquisition. The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $85,000; accounts receivable, $250,000; and accounts payable, $83,000. Mary and Kay, Inc. maintains a $85,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 9 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 March Sales revenue $ 620,000 $ 710,000 $ 725,000 Merchandise purchases 440,000 470,000 590,000 Cash operating costs 110,000 89,000 152,000 Proceeds from sale of equipment 32,000 Required: Prepare a schedule that discloses the firms total cash collections for January through March. Prepare a schedule that discloses the firms total cash disbursements for January through March. Prepare a schedule that summarizes the firms financing cash flows for January through March.January February March Sales revenue $ 620,000 $ 710,000 $ 725,000 Merchandise purchases 440,000 470,000 590,000 Cash operating costs 110,000 89,000 152,000 Proceeds from sale of equipment 32,000 Required: Prepare a schedule that discloses the firms total cash collections for January through March. Prepare a schedule that discloses the firms total cash disbursements for January through March. Prepare a schedule that summarizes the firms financing cash flows for January through March.

Sales revenue $ 620,000 $ 710,000 $ 725,000

Merchandise purchases 440,000 470,000 590,000

Cash operating costs 110,000 89,000 152,000

Required:

1. Prepare a schedule that discloses the firms total cash collections for January through March.

2. Prepare a schedule that discloses the firms total cash disbursements for January through March.

3. Prepare a schedule that summarizes the firms financing cash flows for January through March.

Proceeds from sale of equipment 32,000