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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 Q1 $ 342 281 Q2 $414 363 Q3 $495 583 Q4 $ 459 380 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.q.. 32.

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 Q1 $ 342 281 Q2 $414 363 Q3 $495 583 Q4 $ 459 380 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.q.. 32.

FINANCIAL ACCOUNTING
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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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 Q3 $ 495 583 Q1 AGARWAL, INCORPORATED Cash Budget (in millions) 185 342 375 152 $ 375 $ 281 94 25 94 119 -25 94 $ $ $ $ $ Q4 $ 459 380 $ Q2 152 414 382 184 382 363 19 119 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
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. $ $ $ $ $ $ GAGA $ $ 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 $ $ $ $ $ Q4 $ 459 380 $ Q2 152 414 382 184 382 363 19 119 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
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