Hi :) Can you please check if A=-141 million Thanks! The answers that are given
ID: 2738081 • Letter: H
Question
Hi :)
Can you please check if A=-141 million Thanks!
The answers that are given on the drop box is
A= -154 million, 147 million, -141 million, -995 million
B=-265 million, -1401 million, -118 million, -1260 million
C= -132 million, -112 million, -66 milion, -92 million
D= -1415 million, -849 million, -991 million, -708 million
Consider the case of Mooney Equipment: Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus the first quarter of the next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash collection estimates are shown in the following table (in millions of dollars): Q1 Q3 Q4 Sales $1,210 $1,510 $1,560 $1,360 $1,610 Total cash collections $1,210 $1,260 $1,310 $1,310 You also have the following information about Mooney Equipment: In any given period, Mooney's purchases from suppliers generally account for 72% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of next period's sales. In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,072 million investment. Every quarter, Mooney pays $50 million in interest and dividend payments to long-term debt and equity investors Mooney prefers to keep a minimum target cash balance of at least $14 million at all times. Using the preceding information, answer the following questions:Explanation / Answer
Solution.
Answer is A= -154 million, 147 million, -141 million, -995 million
Quarter Q1 Q2 Q3 Q4 Q5 Begnning Cash balance Sales 1,210.00 1,510.00 1,560.00 1,360.00 1,610.00 Cash Collection 1,210.00 1,260.00 1,310.00 1,310.00 Total cash collection 1,210.00 1,260.00 1,310.00 1,310.00 - Account Payable 1,087.20 1,123.20 979.20 1,159.20 - Wages,Supllies,Tax 226.50 234.00 204.00 241.50 - Plant 1,072.00 Interest, Dividend 50.00 50.00 50.00 50.00 50.00 Cash Dishbrushment 1,363.70 1,407.20 2,305.20 1,450.70 50.00 Net Cash collected (153.70) (147.20) (995.20) (140.70) (50.00) Loan Minimum Cash (14.00) (14.00) (14.00) (14.00) (14.00) Total Deficit (167.70) (161.20) (1,009.20) (154.70) (64.00)