Problem 9-33 Cash budgeting ( LO 9-3, 9-5) 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 exracted from the company's accounting records: - Alt sales are on account. Sixty percent of customer acconuts 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 diselosed the following selected figures: cash. $20,000; accounts receivable, 555,000 , and nccounts 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 muttiples at an 8 percent interest rate, with borrowings taking place at the beginning of the month and repoyments oecurring at the end of the month. Interest is paid at the time of repaying principal and compoted on the portion of principal repaid at that time. - Additional data: Required: 1. Prepare a sehedule that discloses the firm's total cash collections for Jannary through March. 2. Prepare a schedute that discloses the firm's total cash disbursements for January thiough March. 3. Prepare a schedule that summarizes the firmi's financing cash flows for January through Mareh. The schedule should present the following information in the order cited: Beginning cash balance, total receipts (from requirement 1), total payments (from requirement 2), the cash excess (deficieney) before financing, borrowing needed to maintain minimum balance, loun principal repaid, loan interest paid, and ending cash balance