Chapter $1611$th ed $($i$)$

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$7$

Agarwal, Incorporated, has a $50-$day average collection period and wants to maintain a minimum cash balance of $\backslash (\backslash$$ $40\backslash )$ million, which is what the company currently has on hand. The company currently has a receivables balance of $\backslash (\backslash$$ $195\backslash )$ million and has developed the following sales and cash disbursement budgets $($in millions$)$:

$1\mathrm{.}48$

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$\backslash$begin$\{$tabular$\}\{$lcccc$\}$

& Q$1$ & Q$2$ & Q$3$ & Q$4\backslash \backslash$

$\backslash$hline Sales & $\backslash (\backslash$$ $432\backslash )$ & $\backslash (\backslash$$ $504\backslash )$ & $\backslash (\backslash$$ $585\backslash )$ & $\backslash (\backslash$$ $549\backslash )\backslash \backslash$

$\backslash$hline Total cash disbursement & $290$ & $441$ & $686$ & $455$

$\backslash$end$\{$tabular$\}$

Complete the following cash budget for the company.

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Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions rounded to the nearest whole million dollar amount, e$.$g$.,32.$

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$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{$AGARWAL$,$ INCORPORATED$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{$Cash Budget$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{($in millions$)\}\backslash \backslash$

$\backslash$hline & Q$1$ & & Q$2$ & Q$3$ & Q$4\backslash \backslash$

$\backslash$hline Beginning receivables & & & & & $\backslash \backslash$

$\backslash$hline Sales & & $432$ & $504$ & $585$ & $549\backslash \backslash$

$\backslash$hline Cash collections & & & & & $\backslash \backslash$

$\backslash$hline Ending receivables & & & & & $\backslash \backslash$

$\backslash$hline Total cash collections & & & & & $\backslash \backslash$

$\backslash$hline Total cash disbursements & & $290$ & $441$ & $686$ & $455\backslash \backslash$

$\backslash$hline Net cash inflow & & & & & $\backslash \backslash$

$\backslash$hline Beginning cash balance & & & & & $\backslash \backslash$

$\backslash$hline Net cash inflow & & & & & $\backslash \backslash$

$\backslash$hline Ending cash balance & & & & & $\backslash \backslash$

$\backslash$hline Minimum cash balance & & & & & $\backslash \backslash$

$\backslash$hline Cumulative surplus $($deficit$)$ & & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$