Agarwal, Incorporated, has a 50-day average collection period and wants to maintain a minimum cash balance of $35 million, which is what the company currently has on hand. The company currently has a receivables balance of $192 million and has developed the following sales and cash disbursement budgets (in millions): Sales Q1 $ 405 Q2 $ 477 Q3 $ 558 Total cash disbursement 279 415 652 Q4 $ 522 434 ed Complete the following cash budget for the company. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions rounded to the nearest whole million dollar amount, e.g., 32. AGARWAL, INCORPORATED Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning receivables 192 225 $ 265 $ 310 Sales Cash collections 405 477 558 522 372 437 513 542 Ending receivables EA $ 225 265 $ 310 $ 290 Total cash collections $ 372 437 $ 513 $ 542 Total cash disbursements 279 415 652 434 Net cash inflow $ 93 $ 22 $ 139 × $ 108 Beginning cash balance 35 $ 128 GA $ 150 $ 11 Net cash inflow 93 22 139 × 108 Ending cash balance $ 35 × 35 × $ 35 × $ 35 × Minimum cash balance ᏌᏊ $ 35 × $ 35 × $ 35 × $ 35 Cumulative surplus (deficit) $ 93 115 $ 24 × $ 84
Agarwal, Incorporated, has a 50-day average collection period and wants to maintain a minimum cash balance of $35 million, which is what the company currently has on hand. The company currently has a receivables balance of $192 million and has developed the following sales and cash disbursement budgets (in millions): Sales Q1 $ 405 Q2 $ 477 Q3 $ 558 Total cash disbursement 279 415 652 Q4 $ 522 434 ed Complete the following cash budget for the company. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions rounded to the nearest whole million dollar amount, e.g., 32. AGARWAL, INCORPORATED Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning receivables 192 225 $ 265 $ 310 Sales Cash collections 405 477 558 522 372 437 513 542 Ending receivables EA $ 225 265 $ 310 $ 290 Total cash collections $ 372 437 $ 513 $ 542 Total cash disbursements 279 415 652 434 Net cash inflow $ 93 $ 22 $ 139 × $ 108 Beginning cash balance 35 $ 128 GA $ 150 $ 11 Net cash inflow 93 22 139 × 108 Ending cash balance $ 35 × 35 × $ 35 × $ 35 × Minimum cash balance ᏌᏊ $ 35 × $ 35 × $ 35 × $ 35 Cumulative surplus (deficit) $ 93 115 $ 24 × $ 84
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT