1. (10 Marks) Based on the following projections complete the Cash Flow Table. Use 2 decimal places for all values. Given Info ("000s) Q1 $ 15$ 10 Q2 30$ Q3 60 $ 04 90 Estimated Sales ('000s) Capital Investment Requirements ('000s) Opening Balances @ start of Q1 ('000s) AR $ $ A/P Cash 101 Collection & Payment Terms A/R Collection Period (days) A/P Payment Period (days) 30 60 50% $ Purchases ( % of Next Quarters Sales) Next Years Q1 Sales Projection ('000s) Operating Expenses (% of sales) Existing Interest Expense per quarter ('000s) Minimum Required Cash Balance ('000s) Company's Required Return 140 20% 0.25 10 10% Cash Budget ('000's) Q1 Q2 Q3 04 Cash Collections Beginning A/R Sales Cash Collections Ending A/R Cash Disbursements Beginning A/P Purchases Paid A/P Ending A/P Total Cash Outflows Paid A/P Operating Expenses Capital Investments Interest Total cash disbursements Cash Budget Beginning cash balance Total Cash Collections Total Cash Disbursements Net Cash Inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) 2. (4 Marks) In our cash budget we include a "minimum cash balance". Why? Do you have any concerns with the budget above? 1. (10 Marks) Based on the following projections complete the Cash Flow Table. Use 2 decimal places for all values. Given Info ("000s) Q1 $ 15$ 10 Q2 30$ Q3 60 $ 04 90 Estimated Sales ('000s) Capital Investment Requirements ('000s) Opening Balances @ start of Q1 ('000s) AR $ $ A/P Cash 101 Collection & Payment Terms A/R Collection Period (days) A/P Payment Period (days) 30 60 50% $ Purchases ( % of Next Quarters Sales) Next Years Q1 Sales Projection ('000s) Operating Expenses (% of sales) Existing Interest Expense per quarter ('000s) Minimum Required Cash Balance ('000s) Company's Required Return 140 20% 0.25 10 10% Cash Budget ('000's) Q1 Q2 Q3 04 Cash Collections Beginning A/R Sales Cash Collections Ending A/R Cash Disbursements Beginning A/P Purchases Paid A/P Ending A/P Total Cash Outflows Paid A/P Operating Expenses Capital Investments Interest Total cash disbursements Cash Budget Beginning cash balance Total Cash Collections Total Cash Disbursements Net Cash Inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) 2. (4 Marks) In our cash budget we include a "minimum cash balance". Why? Do you have any concerns with the budget above