2. Cash budget Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus the first quarter of next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash collection estimates are shown in the following table (in millions of dollars): Q1 Q2 Q3 Q4 Q5 $1,500 Sales $1,100 $1,400 $1,450 $1,250 Total cash collections $1,100 $1,150 $1,200 $1,200 You also have the following information about Mooney Equipment: You are at the end of the current year, and Q1 is the next period. In any given period, Mooney's purchases from suppliers generally account for 72% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of the next period's sales. In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,072 million investment Every quarter, Mooney pays $60 million in interest and dividend payments to long-term debt and equity investors. Mooney prefers to keep a minimum target cash balance of at least $14 million at all times. Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) The net cash inflow that Mooney expects in the second quarter (02) Mooney's likely cash balance at the end of the year (after Q4). (Hint: Assume that at the beginning of the year, Mooney's cash balance is $35 million and it expects to maintain a minimum target cash balance of at least $14 million.) The maximum investable funds that the firm expects to have in the next year. The largest cash deficit that the firm expects to suffer in the next year. True or False: One of the firm's suppliers offers payment terms of "3/10, net 30" and the other offers net 30. If the firm chooses to go with the one that offers "3/10, net 30" and everything else remains the same the firm's net cash flow is likely to increase in a monthly cash budget after a few months. O True False Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) -51,020 million The net cash inflow that Mooney expects in the second quarter (02) Mooney's likely cash balance at the end of the year (after Q4). (Hint: Assume that at the beginning of the year, Mooney's cash balance is $36 million and it expects to maintain a minimum target cash balance of at least $14 million.) The maximum investable funds that the firm expects to have in the next year. The largest cash deficit that the firm expects to suffer in the next year. -$178 million -$172 million -$165 million Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) The net cash inflow that Mooney expects in the second quarter (22) Mooney's likely cash balance at the end of the year (after Q4). (Hint: Assume that at the beginning of the year, Mooney's cash balance is $36 million and it expects to maintain a minimum target cash balance of at least $14 million.) The maximum investable funds that the firm expects to have in the next year. The largest cash deficit that the firm expects to suffer in the next year. -$142 million -$314 million -51,334 million True or False: One of the firm's suppliers offers payment terms of "3/10, net 30" and the other d -51,499 million firm chooses to go with the one Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) The net cash inflow that Mooney expects in the second quarter (22) Mooney's likely cash balance at the end of the year after Q4). (Hint: Assume that at the beginning of the year, Mooney's cash balance is $36 million and it expects to maintain a minimum target cash balance of at least $14 million.) The maximum investable funds that the firm expects to have in the next year. The largest cash deficit that the firm expects to suffer in the next year -5156 million True or False: One of the firm's suppliers offers payment terms of "3/10, net 30" and the other d -578 million he firm chooses to go with the one that offers "3/10, net 30" and everything else remains the same, the firm's net cash flow is likel monthly cash budget after a few -$109 million months. -$133 million O True Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) The net cash inflow that Mooney expects in the second quarter (22) Mooney's likely cash balance at the end of the year after Q4). (Hint: Assume that at the beginning of the year, Mooney's cash balance is $36 million and it expects to maintain a minimum target cash balance of at least $14 million.) The maximum investable funds that the firm expects to have in the next year. The largest cash deficit that the firm expects to suffer in the next year. -$908 million True or False: One of the firm's suppliers offers payment terms of "3/10, net 30" and the other firm chooses to go with the one that offers "3/10, net 30" and everything else remains the same the firm's net cash flow is likel -$756 million fonthly cash budget after a few months. -51,513 million O True -$1,059 million O False