using the templates

Problem9-33Cashbudgeting(L09-3,9-5)MaryandKay,Inc.,adistributorofcosmeticsthroughoutFlorida,isintheprocessofassemblingacashbudgetforthefirstquarterof201.Thefollowinginformationhasbeenextractedfromthecompanysaccountingrecords: Februaty: S121.000 - 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 35 percent are collected in the following month. Uncollectibles amounting to 5 percent of sale December 31,200, will be recovered and that the recovery will be in January 201. - 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 31,200, 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 availthe 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: 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. 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 (deficiency) before financing, borrowing needed to maintain minimum balance, loan principal repaid. loan interest paid, and ending cash balance. Interest calculation - borrowed at beginning of January. Repaid at end of February. Two months