Finance Ch 15 Homework

S Equip is creating a cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus first quarter of next year) Q1 Q2 Q3 Q4 Q5
Sales 1650 1950 2000 1800 2050
Cash collections 1650 1700 1750 1750
At end of Q1 right now.
Purchases are 74% of expected sales next qt
Taxes are 15% of next period's sales in Q3, Mooney expects to expand one plant which requires additional 1,074 million investment
Every quarter, Mooney pays $60 million in int and div pmts to long term debt and equity holders.
Mooney prefers to keep a min balance of $15 million at all times.
A. What is the next cash inflow in Q3
If Mooney is beginning this year with a cash balance of $37 million and expects to keep a min cash balance of at least $15, what is likely cash balance in Q4?
What is the maximum investable funds firm expects next year?
What is the target cash deficit firm expects to suffer next year. Q1 Q2 Q3 Q4
Purchases (.74 S nextQ) 1443 1480 1332 1517

Cash Budget Q1 Q2 Q3 Q4

Cash Collections 1650 1700 1750 1750

Cash Pmts
Purchases Pmts 1443 1480 1332 1517
Wages Tax Supplie 15% *S next 293 300 270 307.5
Expansion 0 0 1074 0
Int & Div 60 60 60 60
Total pmt 1796 1840 2736 1885

Net Cash Position -146 -140 -986 -135
Beg Cash 37 -109 -249 -1235
Cum Cash -109 -249 -1235 -1370
Target Min 15 15 15 15
Surplus or Borrowing -124 -264 -1250 1385
Ending Cash 15 15 15