Nikul Agarwal, Incorporated, has a 40-day average collection period and wants to maintain a minimum cash balance of $25 million, which iswhat the company currently has on hand. The company currently has a receivables balance of $185 million and has developed thefollowing sales and cash disbursement budgets (in millions):SalesTotal cash disbursementBeginning receivablesSalesCash collectionsEnding receivablesTotal cash collectionsTotal cash disbursementsNet cash inflowBeginning cash balanceNet cash inflowQ1$342281Ending cash balanceMinimum cash balanceCumulative surplus (deficit)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 inmillions rounded to the nearest whole million dollar amount, e.g., 32.$$$$$$GAGA$$Q2$414363Q3$ 495583Q1AGARWAL, INCORPORATEDCash Budget(in millions)185342375152 $375 $281942594119-2594$$$$$Q4$ 459380$Q21524143821843823631911919138$-25$207 x $$$$Q3184495459220459583-124$138 $-12414$-25 $196 X $$$Q4220459475204475380951495109-25280

A cash budget is a budget that provides information about the company's projected cash inflows and…

Agarwal, Incorporated, 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): Sales. Total cash disbursement Q1 $ 342 281 Q2 $414 363 Q3 $495 583 Q4 $ 459 380 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.q.. 32.

Agarwal, Incorporated, 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): Sales. Total cash disbursement Q1 $ 342 281 Q2 $414 363 Q3 $495 583 Q4 $ 459 380 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.q.. 32.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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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
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The financial manager of Sarap Corporation wants to determine the amount of cash outlays to be spent for the nextperiod. He asked the help of the accountant and the latter provided a cash budget for the next year. According tothe computations, the company would be incurring cash expenses of P6,612,500 per month. The financial managerhas estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm’s opportunity costratio is 12%.a. The optimum cash balance is?b. The average cash balance is?c. the number of conversion made during the year is?d. The total cash cost is?
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