Question

9. Piano Man, Inc., has a 30-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 $193 million and has developed the following sales and cash disbursement budgets in millions: Q1 Q2 Q3 Q4 Sales $ 414 $ 486 $ 567 $ 531 Total cash disbursement 352 439 686 434 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 414 486 567 531 Cash collections Ending receivables $ $ $ $ Total cash collections $ $ $ $ Total cash disbursements 352 439 686 434 Net cash inflow $ $ $ $ Beginning cash balance $ $ $ $ Net cash inflow Ending cash balance $ $ $ $ Minimum cash balance $ $ $ $ Cumulative surplus (deficit) $ $ $ $

Answer 1