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2.   Piano Man, Inc., has a 40-day average collection period and wants to maintain a minimum...

2.   Piano Man, 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 receivables balance of $185 million and has developed the following sales and cash disbursement budgets in millions:

Q1 Q2 Q3 Q4
Sales $   342         $   414         $   495         $   459     
Total cash disbursement         281            363            583            380  

Complete the following cash budget for the company. (35 Points)

PIANO MAN, INC.
Cash Budget
(in millions)

    Q1   Q2   Q3   Q4
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)              

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