Wireless Communications Inc. is preparing its cash budget for 2014. Wireless ended 2013 with cash of $81
Question:
Collections from customers are expected to total $11,284 million during 2014, and payments for the cost of services and products should reach $6,166 million. Operating expense payments are budgeted at $2,543 million.
During 2014, Wireless expects to invest $1,825 million in new equipment and sell older assets for $115 million. Debt payments scheduled for 2014 will total $597 million. The company forecasts net income of $890 million for 2014 and plans to pay dividends of $338 million.
Prepare Wireless Communications' cash budget for 2014. Will the budgeted level of cash receipts leave Wireless with the desired ending cash balance of $75 million, or will the company need additional financing? If it does, how much will it need?
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...
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Related Book For 
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
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