Could you please help me with the calcultions and the correct answers for required 1 and required 3. Thanks! Complete this question by entering your answers in the tabs below.**Prepare a schedule that summarizes the firm's financing cash flows for January through March.**| | January | February | March ||------------------------------|---------|----------|-------|| **Beginning cash balance** | $ | $ | $ || **Total receipts** | $ | $ | $ || **Subtotal** | $ | $ | $ || **Less: Total disbursements**| $ | $ | $ || **Cash excess (deficiency) before financing** | $ | $ | $ || **Financing:** | | | || Borrowing to maintain $80,000 balance | $0 | $0 | $0 || Loan principal repaid | $0 | $0 | $0 || Loan interest paid | $ | $ | $ || **Ending cash balance** | $ | $ | $ | This schedule is designed to show the firm's cash flows related to financing activities over a three-month period. It begins with the initial cash balance for each month, followed by the total receipts and disbursements to determine the cash excess or deficiency before financing activities. It also includes sections for any borrowing, loan repayments, and interest payments, and concludes with the ending cash balance for each month. **Cash Budget Analysis for Mary and Kay, Inc. - First Quarter 20x1**Mary and Kay, Inc., a distributor of cosmetics in Florida, is preparing a cash budget for the first quarter of 20x1 based on the following extracted data from their accounting records:1. **Sales and Collections:** - All sales are made on account. - 60% of customer accounts are collected in the sale month; 35% are collected in the following month. - 5% of sales are anticipated to be uncollectible. Management expects 20% of outstanding accounts as of December 31, 20x0, will be recovered in January 20x1.2. **Merchandise Purchases:** - 70% of merchandise purchases are paid in the purchase month; the remaining 30% are paid the next month.3. **Balance Sheet Figures as of December 31, 20x0:** - Cash: $80,000 - Accounts Receivable: $225,000 - Accounts Payable: $78,0004. **Financing:** - A minimum cash balance of $80,000 is maintained. - Financing is available in $1,000 multiples at a 10% interest rate, with borrowings at the start of the month and repayments at the end. Interest is paid upon principal repayment.5. **Additional Data:** | | January | February | March | |---------------|---------|----------|--------| | Sales revenue | $570,000| $660,000 | $675,000| | Merchandise purchases | $390,000| $420,000| $540,000 | | Cash operating costs | $105,000| $84,000 | $147,000 | | Proceeds from sale of equipment | - | - | $27,000 |**Required Tasks:**1. **Total Cash Collections Schedule:** - Develop a schedule outlining cash collections from January to March.2. **Total Cash Disbursements Schedule:** - Create a schedule detailing cash disbursements from January to March.3. **Financing Cash Flow Summary:** - Prepare a summary of the firm’s financing cash flows for January to March. This assignment involves creating detailed schedules and understanding the firm's cash activities to manage resources effectively during the first quarter

This question is about the cash budget. For the preparation of the cash budget, one needs to add all…

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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q