Question

Piano Man, Inc., has a 40-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 $197 million and has developed the following sales and cash disbursement budgets in millions:
   

	Q1				Q2				Q3				Q4
Sales		$	450			$	522			$	603			$	567
Total cash disbursement			335				466				720				466

  
Complete the following cash budget for the company. (A negative answer should be indicated by a minus sign. Enter your answers in millions of dollars, e.g., 32. Do not round intermediate calculations and round your answers to the nearest whole million dollar amount, e.g., 32.)

PIANO MAN, INC. Cash Budget (in millions)
	Q1	Q2	Q3	Q4
Beginning receivables	$	$	$	$
Sales	450	522	603	567
Cash collections
Ending receivables	$	$	$	$
Total cash collections	$	$	$	$
Total cash disbursements	335	466	720	466
Net cash inflow	$	$	$	$
Beginning cash balance	$	$	$	$
Net cash inflow
Ending cash balance	$	$	$	$
Minimum cash balance	$	$	$	$
Cumulative surplus (deficit)	$	$	$	$

Answer 1