pm.54r Agarwal, Incorporated, has a 50-day average collection period and wants to maintain a minimum cash balance of $35 million, which iswhat the company currently has on hand. The company currently has a receivables balance of $189 million and has developed thefollowing sales and cash disbursement budgets (in millions):SalesTotal cash disbursementQ1$ 378Q2$ 450Q3$ 531Q4$ 495268390617412Complete 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, INCORPORATEDCash Budget(in millions)Q1Beginning receivablesSales$189378Cash collectionsEnding receivablesQ2450Q3531Q4495Total cash collectionsTotal cash disbursements268390617412Net cash inflowBeginning cash balanceNet cash inflowEnding cash balanceMinimum cash balanceCumulative surplus (deficit)

AGARWAL, INCORPORATED Cash Budget (in millions) Q1Q2Q3Q4Beginning…

Answered: Agarwal, Incorporated, has a 50-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
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
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Agarwal, Incorporated, has a 40-day average collection period and wants to maintain a minimum cash balance of $30 million, which is what the company currently has on hand. The company currently has a receivables balance of $200 million and has developed the following sales and cash disbursement budgets (in millions): Q1 Q2 $ 477 $ 549 Total cash disbursement 349 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. Sales 491 Q3 $ 630 754 Q4 $ 594 488
Cash Management. A firm maintains a separateaccount for cash disbursements. Total disbursementsare $100,000 per month, spread evenly over the month.Administrative and transaction costs of transferringcash to the disbursement account are $10 per transfer.Marketable securities yield 1% per month. Determinethe size and number of transfers that will minimizethe cost of maintaining the special account. (LO4)
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?
The financial manager of a firm wants to determine the amount of cash outlays to be spent for the next period. He asked the help of the accountant and the latter provided a cash budget for the next year. According to the computations, the company would be incurring cash expenses of P6,612,500 per month. The financial manager has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm’s opportunity cost ratio is 12%. The optimum cash balance is? The average cash balance is? the number of conversion made during the year is? The total cash cost is?
Tox ltd management expect the next three months from January to March 2018 to demand some unusual cash flows. A cash balance of R106 764 is currently on hand.1. Sales for December 2017: R1 339 200 2. Total sales forecasts are: • January 2018 R 669 600 • February 2018 R 892 800 • March 2018 R 781 200 •April 2018 R 892 800 3. 40% of all sales are on credit, while cash sales amount to 60% of total sales. 4. Cost of goods sold average 75% of sales. Inventory purchased during each month averages the cost of sales for the following month. The creditor payment period averages 15 days and goods are purchased consistently over the month. 5. Operating expenses are projected as follows: • Salaries and wages at 12% of sales paid in the month of the sale. • Other expenses at an average of 10%of sales paid in the month of the sale. • Cash receipts expected from repayment of a loan to an employee of R 22 320 due in March 2018. • Repayment of short-term loan of R11 160 is due in March 2018. •…
Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average inventories of $244,500, average accounts receivable of $265,000, and an average accounts payable balance of $79,000. Assuming that all of Ken-Z's sales are on credit, what will be the firm's cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Please help me with my Financial Management assignment. I already worked for it, just want to confirm from experts. I really appreciate any help you can provide. I want to know the solution and answer for Questions no. 2 and 3

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