Cole Communications, Inc., is preparing its cash budget for 2011. Cole ended 2010 with cash of $86

Question:

Cole Communications, Inc., is preparing its for 2011. Cole ended 2010 with cash of $86 million, and managers need to keep a cash balance of at least $82 million for operations. Collections from customers are expected to total $11,305 million during 2011, and payments for the cost of services and products should reach $6,167 million. Operating expense payments are budgeted at $2,544 million.
During 2011, Cole expects to invest $1,826 million in new equipment and sell older assets for $118 million. Debt payments scheduled for 2011 will total $603 million. The company forecasts net income of $885 million for 2011 and plans to pay dividends of $347 million.
Prepare Cole Communications for 2011. Will the budgeted level of cash receipts leave Cole with the desired ending cash balance of $82 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...