Piano Man, Inc., has a 40-day average collection period and wants to maintain a minimum cash balance

Question:

Piano Man, Inc., has a 40-day average collection period and wants to maintain a minimum cash balance of $15 million, which is what the company currently has on hand. The company currently has a receivables balance of $165 million and has developed the following sales and cash disbursement budgets in millions:

Complete the following cash budget for the company. What conclusions do youdraw?

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...