Agarwal, Incorporated, has a 30-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $187 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 $360 320 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q2 $ 432 388 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. $ Q1 Q3 $ 513 617 AGARWAL, INCORPORATED Cash Budget (in millions) 187 360 04 $ 477 391 320 Q2 432 388 Q3 513 617 Q4 477 391

Agarwal, Incorporated, has a 30-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $187 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 $360 320 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q2 $ 432 388 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. $ Q1 Q3 $ 513 617 AGARWAL, INCORPORATED Cash Budget (in millions) 187 360 04 $ 477 391 320 Q2 432 388 Q3 513 617 Q4 477 391

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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