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.
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- 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 391Agarwal, 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 471es 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
- 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 4122 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 471The XYZ customer service branch maintains a disbursement account which is funded by the main office. The branch needs funds for daily disbursements of P40,000 and a minimum balance of P20,000. The cost to transfer funds from the main office to the branch averages P300. The return on money marketable securities is 5%. If the entity uses a 250-day year for financial analysis, how much is the optimal cash amount to be requested by the branch each time?
- Cash Management. A firm maintains a separateaccount for cash disbursements. Total disbursementsare $100,000 per month, spread evenly over the month.Administrative and transaction costs of transferringcash to the disbursement account are $10 per transfer.Marketable securities yield 1% per month. Determinethe size and number of transfers that will minimizethe cost of maintaining the special account. (LO4)Agarwal, Incorporated, has a 40-day average collection period and wants to maintain a minimum 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 the following sales and cash disbursement budgets (in millions): Q1 Q2 $ 477 $ 549 Total cash disbursement 349 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. Sales 491 Q3 $ 630 754 Q4 $ 594 488You 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.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?Frosty Corp. has a minimum cash balance of PHP 100,000 and forecasted sales of PHP 1,000,000. Accounts receivable is expected to be 5% of sales while inventory is expected to be 15% of cost of sales. Gross profit ratio is 20%. Non-Current assets are budgeted at PHP 400,000. Questions: 1. How much is the total asset requirement? 2. How much is the Accounts receivable? 3. How much is the Inventory?