Hurzdan, Inc., has a 32-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $236 million and has developed the following sales and cash disbursement budgets (in millions):

Complete the following cash budget for the company. What conclusions do you draw?

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Q1 Q2 Q3 Q4 $390 $493 $595 $545 Sales Total cash disbursement 321 432 767 463 HURZDAN, INC. Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit)