Hurzdan, Inc., has a 50-day average collection period and wants to maintain a minimumcash balance of $35 million, which is what the company currently has on hand. Thecompany currently has a receivables balance of $189 million and has developed thefollowing sales and cash disbursement budgets (in millions):Q2Sales$450Total cash disbursement 268 390Beginning receivablesSalesCash collectionsEnding receivablesTotal cash collectionsTotal cash disbursementsNet cash inflowBeginning cash balanceNet cash inflowEnding cash balanceMinimum cash balanceCumulative surplus (deficit)Q1$378Complete the following cash budget for the company. (A negative answer should beIndicated by a minus sign. Do not round Intermediate calculations and enter youranswers in millions rounded to the nearest whole million dollar amount, e.g., 32.)+Q3Q4$531 $495412617Q1HURZDAN, INC.Cash Budget(in millions)378268Q2450390Q3531617Q4495412

Cash budget helps in estimating the inflow and outflow of cash over a specific period like monthly,…

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): Q1 Q2 Q3 $378 $450 $531 617 Sales Total cash disbursement 268 390 Q4 $495 412 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 mil on dollar amount, e.g., 32.)

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): Q1 Q2 Q3 $378 $450 $531 617 Sales Total cash disbursement 268 390 Q4 $495 412 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 mil on dollar amount, e.g., 32.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 33P

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