33. Kurt Cobaine's sales estimates (in millions): Q1 = $450m; Q2 = $300m; Q3 = $240m; Q4 = $360m. The beginning receivables balance is $80m. The average collection period is 60 days. Quarterly estimated purchases cost 75% of next quarter's sales. The beginning payables balance is $150m. The average payables period is 90 days. Operating expenses are 20% of quarterly sales and paid in the same quarter. The initial cash balance is $15m. The minimum cash balance is $15m. The firm can borrow at a quarterly rate of 8%. It can invest any surplus cash for a quarterly return of 6%. I. What is the cash collection for Q1? (1.5 marks) II. What is the cash disbursement for Q1? (1.5 marks) III. What is the cash surplus or deficit for Q1? (1 marks) IV. What is the interest payment (from a cash deficit) or earning (from a cash surplus) from Q1 cash surplus or deficit in Q2? (1 marks)

33. Kurt Cobaine's sales estimates (in millions): Q1=$450m;Q2=$300m;Q3=$240m;Q4 =$360m. The beginning receivables balance is $80m. The average collection period is 60 days. Quarterly estimated purchases cost 75% of next quarter's sales. The beginning payables balance is $150m. The average payables period is 90 days. Operating expenses are 20% of quarterly sales and paid in the same quarter. The initial cash balance is $15m. The minimum cash balance is $15m. The firm can borrow at a quarterly rate of 8%. It can invest any surplus cash for a quarterly return of 6%. I. What is the cash collection for Q1? (1.5 marks) II. What is the cash disbursement for Q1? (1.5 marks) III. What is the cash surplus or deficit for Q1? (1 marks) IV. What is the interest payment (from a cash deficit) or earning (from a cash surplus) from Q1 cash surplus or deficit in Q2? (1 marks)