Question

Hurdzan, Inc., has a 30-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $196 million and has developed the following sales and cash disbursement budgets (in millions):

Q1 Q2 Q3 Q4
Sales $441 $513 $594 $558
Total cash disbursement 368 465 720 456


Required:
Wrtie down cash budget for the company.

Answer 1

Attached below

Step-by-step explanation:

Receivables balance = $196 million

Minimum cash balance = $20 million

Given data :

Q1 Q2 Q3 Q4

Sales $441 $513 $594 $558

Total cash disbursement 368 465 720 456

attached below is the cash budget for the company as required