Hurzdan, Inc., has a 32-day average collection period and wants to maintain a minimum cash balance of

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Hurzdan, 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 $236 million and has developed the following sales and cash disbursement budgets (in millions):image

Complete the following cash budget for the company. What conclusions do you draw?image

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Essentials of Corporate Finance

ISBN: 978-1260013955

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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