Agarwal, Incorporated, has a 40-day average collection period and wants to maintain aminimum cash balance of $30 million, which is what the company currently has on hand.The company currently has a receivables balance of $200 million and has developed thefollowing sales and cash disbursement budgets (in millions):Q1Q2$ 477$ 549Total cash disbursement 349Complete the following cash budget for the company.Note: A negative answer should be indicated by a minus sign. Do not round intermediatecalculations and enter your answers in millions rounded to the nearest whole million dollaramount, e.g., 32.Sales491Q3$ 630754Q4$ 594488

An estimate of a company's cash flows for a given time frame is called a cash budget.. This might…

Answered: Complete the following cash budget for…

Business

Accounting

Complete the following cash budget for the company.

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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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): Q2 Sales $450 Total cash disbursement 268 390 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) Q1 $378 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.) + Q3 Q4 $531 $495 412 617 Q1 HURZDAN, INC. Cash Budget (in millions) 378 268 Q2 450 390 Q3 531 617 Q4 495 412
es Agarwal, Incorporated, has a 50-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 $198 million and has developed the following sales and cash disbursement budgets (in millions): Sales Total cash disbursement Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Q1 $ 459 302 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q2 $531 466 Complete the following cash budget for the company. Note: 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. Q1 Q3 $ 612 720 AGARWAL, INCORPORATED Cash Budget (in millions) 459 Q4 $576 477 302 Q2 531 466 Q3 612 720 Q4 576 477
Kupa Ltd has approached to assist in preparing a cash budget. The annual and projected sales are provided below. date Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 April 2021 May 2021 June 2021 July 2021 Sales (in ‘000’) 2000 1970 1900 2100 2200 2240 2000 2160 2180 2200 45% of cash sales are on cash basis. Of credit sales, 35% is collected in the month of sale, 40% one month after sale and 20% two months from sales Gross profit margin is 20%. Goods purchased in a given month are sold in the following month after the month of purchase. Payment of purchases is as follows, 60% is paid one month after purchase and the remainder two months after purchase. Required Compute Cash collected from sales in month of January and February 2021 Cash paid to suppliers of goods in the months of January and February 2021
Which is the correct answer? The following information was reported in a cash budget: Beginning cash balance $280,000 Cash payments 494,000 Cash receipts 370,000 Minimum cash balance desired 200,000 How much cash will the company have to borrow in order to meet its required needs? a. $64,000 b. $124,000 c. $0 d. $44,000
Agarwal, Incorporated, 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 $187 million and has developed the following sales and cash disbursement budgets (in millions): Sales Total cash disbursement Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Q1 $360 320 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q2 $ 432 388 Complete the following cash budget for the company. Note: 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. $ Q1 Q3 $513 617 AGARWAL, INCORPORATED Cash Budget (in millions) 187 360 Q4 $ 477 391 320 Q2 432 388 Q3 513 617 Q4 477 391
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash ba of $7,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $ 7 $ 7 Add collections from customers 84 88 105 378 Total cash available 91 95 Less disbursements: Purchase of inventory 44 54 28 Selling and administrative expenses Equipment purchases 41 32 30 124 8 8 19 45 Dividends 2 2 2 2 Total disbursements 95 96 Excess (deficiency) of cash available over disbursements (2) (1) 12
2 Agarwal, Incorporated, has a 32-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 $245 million and has developed the following sales and cash disbursement budgets (in millions): Sales Total cash disbursement Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow 01 $ 400 332 Complete the following cash budget for the company. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Ending cash balance Minimum cash balance Cumulative surplus (deficit) 02 $502 443 Q1 03 $ 608 779 AGARWAL, INCORPORATED Cash Budget (in millions) 400 04 $ 568 471 332 Q2 502 443 Q3 608 779 Q4 568 471
Garden Depot is a retailer that provided the following budgeted cash flows for next year: 3rd Quarter $ 220,000 $ 227,000 Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $ 190,000 $ 340,000 $ 267,000 $ 237,000 The company's beginning cash balance for next year will be $22,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash…
Agarwal, Incorporated, has a 32-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 $245 million and has developed the following sales and cash disbursement budgets (in millions): Sales Total cash disbursement Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow 01 $ 400 332 Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) 02 $ 502 443 Complete the following cash budget for the company. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Q1 Q3 $ 608 779 AGARWAL, INCORPORATED Cash Budget (in millions) 400 04 $ 568 471 332 Q2 502 443 Q3 608 779 Q4 568 471
Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus the first quarter of the next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash collection estimates are shown in the following table (in millions of dollars): Q1 Q2 Q3 Q4 Q5 Sales $1,100 $1,400 $1,450 $1,250 $1,500 Total cash collections $1,100 $1,150 $1,200 $1,200 You also have the following information about Mooney Equipment: • In any given period, Mooney’s purchases from suppliers generally account for 72% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of next period’s sales. • In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,072 million investment. • Every quarter, Mooney pays $60 million in interest and…
You are hired as a financial manager and your first task is to establish the cash budget of your firm.You gathered the following information: The firm receives all income from sales•Sales estimates (in millions)* Quarter1 = 1,000; Quarter2 = 1,250; Quarter3 = 1,500; Quarter4 = 2,000; Quarter1 next year = 1,200• Accounts receivable* Beginning receivables = $3000* Average collection period = 45 days• Accounts payable* Purchases = 60% of next quarter’s sales* Beginning payables = 1,200* Accounts payable period is 45 days• Other expenses*Wages, taxes, and other expense are 25% of sales*Interest and dividend payments are $100*A major capital expenditure of $500 is expected in the second quarter•The initial cash balance is $100 and the company maintains a minimum balance of $50
You are hired as a financial manager and your first task is to establish the cash budget of your firm.You gathered the following information. The firm receives all income from sales•Sales estimates (in millions)* Quarter1 = 1,000; Quarter2 = 1,250; Quarter3 = 1,500; Quarter4 = 2,000; Quarter1 next year = 1,200• Accounts receivable* Beginning receivables = $3000* Average collection period = 45 days• Accounts payable* Purchases = 60% of next quarter’s sales* Beginning payables = 1,200* Accounts payable period is 45 days• Other expenses*Wages, taxes, and other expense are 25% of sales*Interest and dividend payments are $100*A major capital expenditure of $500 is expected in the second quarter•The initial cash balance is $100 and the company maintains a minimum balance of $50 1) Required: establish the cash budget of the firm.