Byer Communications, Inc., is preparing its cash budget for the year ending December 31, 2017. Byer ended

Question:

Byer Communications, Inc., is preparing its for the year ending December 31, 2017. Byer ended 2016 with cash of $65 million and managers need to keep a cash balance of at least $68 million for operations.
Collections from customers are expected to total $11,283 million during 2017, and payments for the cost of services and products should reach $6,194 million. Operating expense payments are budgeted at $2,556 million.
During 2017, Byer expects to invest $1,823 million in new equipment and sell older assets for $137 million. Debt payments scheduled for 2017 will total $564 million. The company forecasts net income of $887 million for 2017 and plans to pay dividends of $325 million.
Prepare Byer Communications' for 2017. Will the budgeted level of cash receipts leave Byer with the desired ending cash balance of $68 million, or will the company need additional financing? If so, how much?
Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...