Piano Man, Inc, 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 receivable balance of $218 million and has developed the following sales and cash disbursement budgets in millions:
Q1 Q2. Q3 Q4
Sales $378. $468. $570. $522
total cash disbursement $318. $408. $726. $450
Complete the following cash budget for the company. What conclusiorns do you draw?
Q1 Q2 Q3
Beginning receivables
Sales
Cash collections
Ending receivables
Total cash collections
Total cash disbursement
Net cash inflow
Beginning cash balance
Net cash inflow
Ending cash balance
Minimum cash balance
Cumulative surplus (deficit)
Please answer and explain.