Ox1. The folowing information nas been extracted from the company's accounting records: 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 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 disclosed the following selected figures: cash, $80,000; accounts receivable, $225,000; and accounts payable, $78,000. Mary and Kay, Inc., maintains a $80,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 10 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 $570,000 390,000 105,000 February $660,000 420,000 84,000 March $675,000 540,000 147,000 27,000 Sales revenue Merchandise purchases Cash operating costs Proceeds from sale of equipment equired: Prepare a schedule that discloses the firm's total cash collections for January through March. . Prepare a schedule that discloses the firm's total cash disbursements for January through March. . Prepare a schedule that summarizes the firm's financing cash flows for January through March.
Ox1. The folowing information nas been extracted from the company's accounting records: 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 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 disclosed the following selected figures: cash, $80,000; accounts receivable, $225,000; and accounts payable, $78,000. Mary and Kay, Inc., maintains a $80,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 10 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 $570,000 390,000 105,000 February $660,000 420,000 84,000 March $675,000 540,000 147,000 27,000 Sales revenue Merchandise purchases Cash operating costs Proceeds from sale of equipment equired: Prepare a schedule that discloses the firm's total cash collections for January through March. . Prepare a schedule that discloses the firm's total cash disbursements for January through March. . Prepare a schedule that summarizes the firm's financing cash flows for January through March.
Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter9: Profit Planning And Flexible Budgets
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Problem 72P: Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for...
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Could you please help me with the calcultions and the correct answers for required 1 and required 3.
Thanks!
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a schedule that summarizes the firm's financing cash flows for January through March.
January
February
March
Beginning cash balance
Total receipts
Subtotal
$
0 $
이 $
Less: Total disbursements
Cash excess (deficiency) before financing
O $
Financing:
Borrowing to maintain $80,000 balance
Loan principal repaid
Loan interest paid
Ending cash balance
$
$
이 $
olo
Transcribed Image Text:Check my
work
Mary and Kay, Ic., 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 company's accounting records:
• 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 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 disclosed the following selected figures: cash, $80,000; accounts receivable, $225,000;
and accounts payable, $78,000.
• Mary and Kay, Inc., maintains a $80,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at
an 10 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
$570,000
390,000
105,000
February
$660,000
420,000
84,000
March
Sales revenue
Merchandise purchases
Cash operating costs
Proceeds from sale of equipment
$675,000
540,000
147,000
27,000
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.
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How is the beginning cash balance 410,925 in March?
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