Piano Man, Inc., has a 32-day average collection period
November 24, 2020
Answer of Piano Man, Inc., has a 32-day average collection period in $2 Only (Instant Download)
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 receivables balance of $182 million and has developed the following sales and cash disbursement budgets in millions:
| Q1 | Q2 | Q3 | Q4 | |
| Sales | $315 | $390 | $475 | $435 |
| Total cash disbursement | 265 | 340 | 605 | 375 |
| Required: |
| Complete the following cash budget for the company. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers in millions of dollars. Round your answers to the nearest whole million dollar amount (e.g., 32).) |
| PIANO MAN, INC. Cash Budget (in millions) | ||||
| Q1 | Q2 | Q3 | Q4 | |
| Beginning receivables | $ | $ | $ | $ |
| Sales | 315 | 390 | 475 | 435 |
| Cash collections | ||||
| Ending receivables | $ | $ | $ | $ |
| Total cash collections | $ | $ | $ | $ |
| Total cash disbursements | 265 | 340 | 605 | 375 |
| Net cash inflow | $ | $ | $ | $ |
| Beginning cash balance | $ | $ | $ | $ |
| Net cash inflow | ||||
| Ending cash balance | $ | $ | $ | $ |
| Minimum cash balance | $ | $ | $ | $ |
| Cumulative surplus (deficit) | $ | $ | $ | $ |
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