accounting

Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling a cash budget for the first quarter of 20×1. The following information has been extracted from the company’s accounting records:

1. All sales are on account. Sixty percent of customer accounts are collected in the month of the sale; 35 percent are collected in the following month. Uncollectibles amounting in 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20×0, will be recovered and that the recovery will be in January 20×1.
2. 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.
3. The December 31, 20×0 , balance sheet disclosed the following selected figures: Cash $20,000, accounts receivable $55,000, and accounts payable $22,000.
4. Mary and Kay, Inc. maintain a $20,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 8 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 the time.
5. Additional data:
January February March
Sales revenue $150,900 $180,000 $185,000
Merchandise purchases. $90,000 $100,000 $140,000
Cash operating costs $31,000 $24,000 $45,000
Proceeds from sale of equipment – – $5,000

Don't use plagiarized sources. Get Your Custom Essay on
accounting
From as low as $9/Page
Order Essay

1. Prepare a schedule that discloses the firms total cash collections for January through March.
2. Prepare a schedule that discloses the firm’s total cash disbursements form January through March.

The Homework Writings
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.

Title-page

A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.

Bibliography

Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At thehomeworkwritings.com, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.

Pricing

Flexible Pricing

Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.

Communication

Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.

Deadlines

Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.

Reviews

Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.