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 01 $ 459 302 Beginning receivables Q2 $ 531 466 Q3 $ 612 720 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. 04 $ 576 477 Q1 AGARWAL, INCORPORATED Cash Budget (in millions) Q2 Q3 Q4

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Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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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