Agarwal, Incorporated, has a 32-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 $245 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 01 $ 400 332 Ending cash balance Minimum cash balance Cumulative surplus (deficit) 02 $ 502 443 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 round your answers to the nearest whole number, e.g., 32. Q1 03 $ 608 779 AGARWAL, INCORPORATED Cash Budget (in millions) 400 04 $ 568 471 332 Q2 502 443 Q3 608 779 Q4 568 471
Agarwal, Incorporated, has a 32-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 $245 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 01 $ 400 332 Ending cash balance Minimum cash balance Cumulative surplus (deficit) 02 $ 502 443 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 round your answers to the nearest whole number, e.g., 32. Q1 03 $ 608 779 AGARWAL, INCORPORATED Cash Budget (in millions) 400 04 $ 568 471 332 Q2 502 443 Q3 608 779 Q4 568 471
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Agarwal, Incorporated, has a 32-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 $245 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
01
$ 400
332
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 round your answers to
the nearest whole number, e.g., 32.
Ending cash balance
Minimum cash balance
Cumulative surplus (deficit)
02
$502
443
Q1
03
$ 608
779
AGARWAL, INCORPORATED
Cash Budget
(in millions)
400
04
$ 568
471
332
Q2
502
443
Q3
608
779
Q4
568
471"
Transcribed Image Text:2
Agarwal, Incorporated, has a 32-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 $245 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
01
$ 400
332
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 round your answers to
the nearest whole number, e.g., 32.
Ending cash balance
Minimum cash balance
Cumulative surplus (deficit)
02
$502
443
Q1
03
$ 608
779
AGARWAL, INCORPORATED
Cash Budget
(in millions)
400
04
$ 568
471
332
Q2
502
443
Q3
608
779
Q4
568
471
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