Agarwal, Incorporated, has a 40-day average collection period and wants to maintain a minimum cash balance of $25 million, which is what the company currently has on hand. The company currently has a receivables balance of $185 million and has developed the following sales and cash disbursement budgets (in millions): Sales Total cash disbursement Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Q1 $ 342 281 Ending cash balance Minimum cash balance Cumulative surplus (deficit) 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. $ $ $ $ GAGA $ $ $ Q2 $414 363 03 $ 495 583 Q1 AGARWAL, INCORPORATED Cash Budget (in millions) 185 $ 342 375✔ 152 $ 375 $ 281 94 25 94✔ $ $ 04 $ 459 380 119 $ -25 $ 94 $ Q2 152 414 382✔ 184 382 363 19 119 *33333 19✓ $ $ $ $ $ 138 $ -25 $ 207 X $ Q3 184 495 $ 459✔ 220 $ 459 $ 583 -124 138 $ $ -124✓ 14 $ -25 $ 196 X $ Q4 220 459 475✓ 204✔ 475✔ 380 95✔ 14✓ 95✓ 109✔ -25✔ 280 x
Agarwal, Incorporated, has a 40-day average collection period and wants to maintain a minimum cash balance of $25 million, which is what the company currently has on hand. The company currently has a receivables balance of $185 million and has developed the following sales and cash disbursement budgets (in millions): Sales Total cash disbursement Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Q1 $ 342 281 Ending cash balance Minimum cash balance Cumulative surplus (deficit) 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. $ $ $ $ GAGA $ $ $ Q2 $414 363 03 $ 495 583 Q1 AGARWAL, INCORPORATED Cash Budget (in millions) 185 $ 342 375✔ 152 $ 375 $ 281 94 25 94✔ $ $ 04 $ 459 380 119 $ -25 $ 94 $ Q2 152 414 382✔ 184 382 363 19 119 *33333 19✓ $ $ $ $ $ 138 $ -25 $ 207 X $ Q3 184 495 $ 459✔ 220 $ 459 $ 583 -124 138 $ $ -124✓ 14 $ -25 $ 196 X $ Q4 220 459 475✓ 204✔ 475✔ 380 95✔ 14✓ 95✓ 109✔ -25✔ 280 x
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
Related questions
Question
mni.3
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 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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