Mary & Kay Inc, a distrubutor 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. 60% of customer accounts are collected in the month of sale; 35% are collected in the following month. Uncollectibles amounting to 5% of sales are anticipated, and management believes that only 20% of the accounts outstanding on December 32, 20X0 will be revocered and that the recovery will be in January 20X1.

-70% of the the merchandise purchases are paid for in the month of purchase; the remaining 30% are paid for in the month after acquisition.

-The Decemeber 31, 20X0 balance sheet disclosed the following selected figures; Cash, $85,000; accounts receivable, $205,000; and accounts payable, $74,000.

-Mary and Kay, Inc. maintainsa a $85,000 minimum cash balance at all times, Financing is available (and retired) in $1,000 multiples at an 9% interest rate, with borrowings taking place at the beginning of the month and repayments occuring at the end of the month. Interest is paid at the time of repaying princpal and computed on the portion of principal repaid at the time. Additional data:

January February March

Sales revenue $530,000 $620,000 $635,000

Merchandise purchases $350,000 $380,000 $500,000

Cash operating costs $101,000 $80,000 $143,000

Proceeds from sale of equipment $23,000

Required:

1. Prepare a schedule that discloses the firm's total cash collections of 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.

1. Prepare a schedule that discloses the firm's total cash collection for January through March.

	January	February	March
Collection of accounts receivable
Collection of January sales
Collection of February Sales
Sale of equipment
Total Cash collections

2. Prepare a schedule that discloses the firm's total cash disbursements for January through March.

	January	February	March
Payment of accounts receivable
Payment of January
Payment of February
Payment of March
Cash operating costs
Total disbursements

3. Prepare a schedule that summarzes the firm's financing cash flows for January through March

	January	February	March
Beginning Cash balance
Total reciepts
subtotal
Less: total disbursements
Cash excess (deficiency)	XXXXXXX	XXXXXXX	XXXXXX
Financing	XXXXXXX	XXXXXX	XXXXXXX
Borrowing to March
Loan principal repaid
Loan interest paid
Ending cash balance