2. 18.2 Because Greenwell has a 60-day collection period, only sales made in the first 30 days of the quarter will be collected in the same quarter. Total cash collections in the first quarter will thus equal 30/90 = 1/3 of sales plus beginning receivables or 1/3 × $150 + $240 = $290. Ending receivables for the first quarter (and the second quarter beginning receivables) are the other 2/3 of sales or 2/3 × $150 = $100. The remaining calculations are straightforward, and the completed budget is as follows:

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Greenwell Limited cash budget (in millions) Q1 Q2 Q3 Q4 Beginning receivables $240 $100 $110 $ 120 Sales 150 165 180 135 Cash collections 290 155 170 165 Ending receivables $100 $110 $120 $ 90 Total cash collections $290 $155 $170 $165 Total cash disbursements 170 160 185 190 Net cash inflow Beginning cash balance $120-$5-$15-$25 $ 45 $165 $160 $145