16.2 The Masson Corporation
Question # 00060666
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Updated on: 04/10/2015 11:44 PM Due on: 04/11/2015
Cash Balance for Masson Corporation. The Masson Corporation has a 60-day average collection period and wishes to maintain a $5 million minimum cash balance. Based on this and the information below, complete the following cash budget. What conclusions do you draw?
MASSON CORPORATION Cash Budget (in millions) | ||||
Q1 | Q2 | Q3 | Q4 | |
Beginning receivables | $120 | |||
Sales | 90 | $120 | $150 | $120 |
Cash collections | ||||
Ending receivables | ||||
Total cash collections | ||||
Total cash disbursements | 80 | 160 | 180 | 180 |
Net cash inflow | ||||
Beginning cash balance | $ 5 | |||
Net cash inflow | ||||
Ending cash balance | ||||
Minimum cash balance | ||||
Cumulative surplus (deficit) |
-
Rating:
/5
Solution: 16.2 The Masson Corporation (Solution)