Hurzdan, Inc., has a 50-day average collection period and wants to maintain a minimumcash balance of $35 million, which is what the company currently has on hand. Thecompany currently has a receivables balance of $189 million and has developed thefollowing sales and cash disbursement budgets (in millions):Q2Sales$450Total cash disbursement 268 390Beginning receivablesSalesCash collectionsEnding receivablesTotal cash collectionsTotal cash disbursementsNet cash inflowBeginning cash balanceNet cash inflowEnding cash balanceMinimum cash balanceCumulative surplus (deficit)Q1$378Complete the following cash budget for the company. (A negative answer should beIndicated by a minus sign. Do not round Intermediate calculations and enter youranswers in millions rounded to the nearest whole million dollar amount, e.g., 32.)+Q3Q4$531 $495412617Q1HURZDAN, INC.Cash Budget(in millions)378268Q2450390Q3531617Q4495412

Cash budget helps in estimating the inflow and outflow of cash over a specific period like monthly,…

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): Q1 Q2 Q3 $378 $450 $531 617 Sales Total cash disbursement 268 390 Q4 $495 412 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 mil on dollar amount, e.g., 32.)

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): Q1 Q2 Q3 $378 $450 $531 617 Sales Total cash disbursement 268 390 Q4 $495 412 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 mil on dollar amount, e.g., 32.)

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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37
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