Hurzdan, Inc., has a 40-day average collection period and 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 Q2 Q4 $414 $459 281 363 583 380 Q1 $342 Q3 $495 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.)
Hurzdan, Inc., has a 40-day average collection period and 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 Q2 Q4 $414 $459 281 363 583 380 Q1 $342 Q3 $495 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Hurzdan, Inc., 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 recelvables 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
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.)
Ending receivables
Total cash collections
Total cash disbursements
Net cash inflow
Beginning cash balance
Net cash inflow
Q3
Q4
Q2
$414 $495
$459
281 363 583 380
Ending cash balance
Minimum cash balance
Q1
$342
Q1
HURZDAN, INC.
Cash Budget
(in millions)
342
281
Q2
414
363
Q3
495
583
Q4
459
380
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