(Learning Objective 3: Preparing a cash budget) Fallon Communications, Inc., is preparing its cash budget for 20X7. Fallon ended 20X6 with cash of €82 million, and managers need to keep a cash balance of at least €81 million for operations.

Collections from customers are expected to total €11,307 million during 20X7, and payments for the cost of services and products should reach €6,174 million. Operating expense payments are budgeted at €2,545 million.
During 20X7, Fallon expects to invest €1,831 million in new equipment and sell older assets for €121 million. Debt payments scheduled for 20X7 will total €604 million.
The company forecasts net income of €883 million for 20X7 and plans to pay dividends of €341 million.
Prepare Fallon Communications’ cash budget for 20X7. Will the budgeted level of cash receipts leave Fallon with the desired ending cash balance of €81 million, or will the company need additional fi nancing? If so, how much?