Agarwal, Incorporated, has a 40-day average collection period and wants to maintain a minimum cash balance of $25 million, which iswhat the company currently has on hand. The company currently has a receivables balance of $188 million and has developed thefollowing sales and cash disbursement budgets (in millions):SalesTotal cash disbursementQ1Q2$ 369 $ 441295Q3$ 522389617Q4$ 486402Complete 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 inmillions rounded to the nearest whole million dollar amount, e.g., 32.AGARWAL, INCORPORATEDQ1Beginning receivablesSalesCash collectionsEnding receivablesCash Budget(in millions)369Q2441Q3522Q4486Total cash collectionsTotal cash disbursements295389617402Net cash inflowBeginning cash balanceNet cash inflowEnding cash balanceMinimum cash balanceCumulative surplus (deficit)

1. Beginning ReceivablesFormula:For Q1: Given as $188 million.For subsequent quarters: Beginning…

Answered: Agarwal, Incorporated, has a 40-day…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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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…
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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Hurzdan, Inc., 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 $189 million and has developed the following sales and cash disbursement budgets (in millions): Q2 Sales $450 Total cash disbursement 268 390 Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q1 $378 Complete the following cash budget for the company. (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.) + Q3 Q4 $531 $495 412 617 Q1 HURZDAN, INC. Cash Budget (in millions) 378 268 Q2 450 390 Q3 531 617 Q4 495 412
es Agarwal, Incorporated, has a 50-day average collection period and wants to maintain a minimum cash balance of $40 million, which is what the company currently has on hand. The company currently has a receivables balance of $198 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 $ 459 302 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q2 $531 466 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 $ 612 720 AGARWAL, INCORPORATED Cash Budget (in millions) 459 Q4 $576 477 302 Q2 531 466 Q3 612 720 Q4 576 477
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Frosty Corp. has a minimum cash balance of PHP 100,000 and forecasted sales of PHP 1,000,000. Accounts receivable is expected to be 5% of sales while inventory is expected to be 15% of cost of sales. Gross profit ratio is 20%. Non-Current assets are budgeted at PHP 400,000. Questions: 1. How much is the total asset requirement? 2. How much is the Accounts receivable? 3. How much is the Inventory?

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