Question: Cellular Communications, Inc., is preparing its cash budget for 20X8. Cellular ended 20X7 with cash of $81 million, and managers need to keep a cash

Cellular Communications, Inc., is preparing its cash budget for 20X8. Cellular ended 20X7 with cash of $81 million, and managers need to keep a cash balance of at least $75 million for operations.

Collections from customers are expected to total $11,284 million during 20X8, and payments for the cost of services and products should reach $6,166 million. Operating expense payments are budgeted at $2,543 million.

During 20X8, Cellular expects to invest $1,825 million in new equipment and sell older assets for $115 million. Debt payments scheduled for 20X8 will total $597 million. The company forecasts net income of $890 million for 20X8 and plans to pay dividends of $338 million.

Prepare Cellular Communications' cash budget for 20X8. Will the budgeted level of cash receipts leave Cellular with the desired ending cash balance of $75 million, or will the company need additional financing? If so, how much?

Step by Step Solution

★★★★★

3.44 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Cellular Communications Inc Cash Budget For the year ended 2... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

988-B-A-G-F-A (9591).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming...

Wireless Communications Inc. is preparing its cash budget for 2014. Wireless ended 2013 with cash of $81 million, and managers need to keep a cash balance of at least $75 million for operations....

Cole Communications, Inc., is preparing its cash budget for 2011. Cole ended 2010 with cash of $86 million, and managers need to keep a cash balance of at least $82 million for operations....

Fallon Communications, Inc., is preparing its cash budget for 2011. Fallon ended 2010 with cash of $82 million, and managers need to keep a cash balance of at least $81 million for operations....

Please help me Question 1 Frank White operates a roller-skating center. He has just received the monthly bank statement at November 30 from Citizen National Bank, and the statement shows an ending...

Question 3 Evan Neal operates a roller-skating center. He has just received the monthly bank statement at January 31 from Citizen National Bank, and the statement shows an ending balance of $575....

2. Gale Communications, Inc., is preparing its cash budget for 2012. Gale ended 2011 with cash of $85 million, and managers need to keep a cash balance of at least $78 million for...

Gale Communications, Inc., is preparing its cash budget for 2012. Gale ended 2011 with cash of $85 million, and managers need to keep a cash balance of at least $78 million for operations....

2. Donn Communications, Inc., is preparing its cash budget for 2012. Donn ended 2011 with cash of $88 million, and managers need to keep a cash balance of at least $79 million for operations....

Dexter Communications, Inc., is preparing its cash budget for 2015. Dexter ended 2014 with cash of $68 million and managers need to keep a cash balance of at least $70 million for operations....

Donn Communications, Inc., is preparing its cash budget for 2012. Donn ended 2011 with cash of $88 million, and managers need to keep a cash balance of at least $79 million for operations....

Study the Minitab output. Discuss the type of distribution, the mean, standard deviation, and why the probabilities fall as theydo. Probability Density Function Binomial with n-15 and n 0.36 P(X-x)...

Which HR practices can benefit by the use of social collaboration tools like Twitter and Facebook? Identify the HR practices and explain the benefits gained.

Answer from chapters 3-5 of the textbook the cultural mindset: managing people across cultures Out-groups are usually met with: O Enthusiasm Suspicion or neutrality O Automatic trust Acceptance

For the system with open loop transfer function . a) Draw the Bode curve for K = 100. (asymptotes of the amplitude and phase diagrams and resultantDraw the curve, the curve of each asymptote which...

2. You are a Financial Planner. Design a Financial Plan for your client to help him/ her meet their Life Goals (e.g. child education/ marriage, new business, retirement etc.). Also advise your client...

In a negative unit feedback system, the control body is of PD (proportion + derivative) type and its proportion gain is Kp and derivative gain is Kd. The supervised system is of type 0 and has two...

Describe how systems, policies, and procedures generally support the development of effective work relationships. Policies Procedures Systems Interpersonal Styles Communications Consultation Cultural...

[R elated to the C hap ter O pener on page 134] According to a news story, during the summer of 2015, gasoline prices were expected to decline by 32 percent, while U.S. drivers are expected to...

Assume that Mason has a subsidiary company based in Japan. Requirements 1. Translate into dollars the foreign-currency balance sheet of the Japanese subsidiary of Mason. Yen...

Infografix Corporations consolidated sales for 2010 were $26.6 billion, and expenses totaled $24.8 billion. Infografix operates worldwide and conducts 37% of its business outside the United States....

Cathy Talbert is the general manager of Barham Company, which provides data-management services for physicians in the Columbus, Ohio, area. Barham Company is having a rough year. Net income trails...

a) Given the following pair wise exchange rates: 1 = $1.1268, and 1 = $1.4571 (i) Calculate the cross-rate of euros per pound. (5 points) (ii) Calculate the cross-rate of pounds per euro. (5 points)...

Which of the following statements is False about regression analysis Question 3 1 pts Which of the following statements is FALSE about regression analysis? O Regression analysis falls under...

(7.6) The size of the left upper chamber of the heart is one measure of cardiovascular health. When the upper left chamber is enlarged, the risk of heart problems is increased. A paper described a...