Picoso Foods has a 45-day average collection period and an average payables period of 30 days. The 2015 sales forecast is given below, and Q1 sales for 2016 are forecasted to be $50M. The company?s purchases are equal to 60% of next quarter?s sales. Picoso wishes to maintain a $5 million minimum cash balance. (Other cash disbursements include wages, rent, utilities, etc.). Assume there are 90 days in each quarter, and a starting cash balance of $6 million. Use this information to complete the following quarterly cash budget.

Picoso Foods has a 45-day average collection period and an average payables period of 30 days. The 2015 sales forecast is given below, and Q1 sales for 2016 are forecasted to be $50M. The company's purchases are equal to 60% of next quarter's sales. Picoso wishes to maintain a $5 million minimum cash balance. (Other cash disbursements include wages, rent, utilities, etc.). Assume there are 90 days in each quarter, and a starting cash balance of $6 million. Use this information to complete the following quarterly cash budget. Q1 Beginning receivables Sales Q2 Q3 Q4 25 30 40 2 2 2 5 5 5 5 20 Cash collections Ending receivables Beginning payables 4 Purchases Payments to suppliers Ending payables Other cash disbursements 2 Total cash disbursements Beginning cash balance 6 Net cash inflow Ending cash balance Minimum cash balance 5 Cumulative surplus (deficit) 8