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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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mni.3
Transcribed Image Text: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.
$
GA
$
$
GA
$
$
$
$
$
Q2
$414
363
Q3
$ 495
583
Q1
AGARWAL, INCORPORATED
Cash Budget
(in millions)
185
342
375
152
375 $
281
94
25
94
119
-25
94
$
GA
$
$
$
Q4
$ 459
380
$
Q2
152
414
382
184
382
363
19
119
19
138
-25
207 × $
$
$
$
$
Q3
184
495
459
220
$
CA
$
$
459
583
-124
$
138 $
-124
14
-25
196 X $
$
Q4
220
459
475
204
475
380
95
14
95
109
-25
280 X
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