4. Cash budget Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five cuarters (one year plus the first quarter of next year). The cash collection estimates are based on sales projections and expected collection of recelvables. The sales and cash collection estimates are shown in the following table (in millions of dollars): You aiso have the following information about Mooney Equipment: - You are at the end of then current year, and Q1 is the next period. - In any given period, Mooney's purchases from suppliers generally account for 74% of the expected sales in the next periad, and wages, supplies, and taxes are expected to be 15% of the next perlod's sales. - 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 74% 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 $1,074 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 $15 million at all times. Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) True or Faise: The income statement and the cash budget are exactly the same. The only difference is that the income statement is prepared semiannually, whereas the cash budget is prepared dally or monthly. True False 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 recelvabies. The sales and cash collection estimates are shown in the following table (in millions of dollars): 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 74% 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 $1,074 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 $15 million at all times. Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dolfar.) True or False: The income statement and the cash budget are exactly the same. The only difference is that the income statement is prepared semlannually, whereas the cash budget is prepared daily or monthly. True False