Question: Wireless Communications Inc. is preparing its cash budget for 2014. Wireless ended 2013 with cash of $81 million, and managers need to keep a cash

Wireless Communications Inc. is preparing its cash budget for 2014. Wireless ended 2013 with cash of $81 million, and managers need to keep a cash balance of at least $75 million for operations.
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?

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