P7-8B Len Filer, Chief Financial Officer of Toys.com. is responsible for the company's budgeting process. Filer's staff is preparing the company's cash budget for 20X1. A key input to the budgeting process is last year's statement of cash flows, which provides the data in the table (in millions) for 20X0. Cash receipts appear as positive amounts; cash payments are negative amounts, denoted within parentheses. Cash and Cash Equivalents TOYS.COM Cash-Flow Data for 20X0 Purchases of plant assets... Borrowings.. Beginning of year 20X0. $ End of year 20X0.. 370 203 $(535) 292 Collections from customers 9,414 Interest revenue collected... 17 Long-term debt repayments. Cash received for (9) Purchases of inventory (6,750) investments by owners............ 16 Operating expenses paid.............. (2.431) Payments to owners (200) Required 1. Prepare the Toys.com cash budget for 20X1. Date the budget "20X1" and denote the beginning and ending cash balances as "beginning" and "ending." Round to the nearest million dollars. Assume the company expects 20X1 to be the same as 20X0, but with the following changes:

a. In 20X1, the company expects a 9% increase in collections from customers and an 8% increase in purchases of inventory.

b. Filer plans for the company to end the year with a cash balance of $400 million.