7. Cash budget Aa Aa The cash budget is considered the primary forecasting tool when firms try to estimate their cash flows and figure out if they are ikely to need additional cash flows or ta generate surplus cash. Consider the case of Mooney Equipment Mooney Equipment is putting together its cash budget for the fllowing year and has forecasted expected cash coilections over the next five quarters (one year plus the frst quarter of the next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash colection estimates are shown in the following table (in millions of dollars) Q1 Q2 34 Q5 1,430 $1,730 $1,780 $1,580 $1,830 Sales Total cash collections $1,430 $1,480 $1,530 $1,530 You also have the following information about Mooney Equipment: . In any given period. Mooney's purchases from suppliers generally account for 74% of the expected sales in the net pend, and wages, spple, and taxes are exp ed to be i5%ofnext period's sales In the third quarter, Mooney expects to expand one of its plants, whic will require an additional $1,074 million investment . Every quater, Mooney peys $5 milion n nterest and dvidend payments to long-term deot and uty investors Mooney prefers to keep a minimum taryet cash talance of at least $15 milion at all times. uxing the preceding information, answer the folowing qetions , What is the net cash inflow thet Mooney expects in the second quarter (02) T Mooney is beginning this year with a cash balance of $37 milion and expects to mnantan a mimum target cash balance of ot lest $15 milon, what well be its tikely Cas balane al the end of the year ltfter Q4)) n the mrimma unds mat the frm expects to lave in the net year