# 8

Piano Man, Inc., has a 30-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $187 million and has developed the following sales and cash disbursement budgets in millions:

	Q1				Q2				Q3				Q4
Sales		$	360			$	432			$	513			$	477
Total cash disbursement			320				388				617				391

Complete the following cash budget for the company. (A negative answer should be indicated by a minus sign. Enter your answers in millions of dollars, e.g., 32. Do not round intermediate calculations and round your answers to the nearest whole million dollar amount, e.g., 32.)

PIANO MAN, INC. Cash Budget (in millions)
	Q1	Q2	Q3	Q4
Beginning receivables	$	$	$	$
Sales	360	432	513	477
Cash collections
Ending receivables	$	$	$	$
Total cash collections	$	$	$	$
Total cash disbursements	320	388	617	391
Net cash inflow	$	$	$	$
Beginning cash balance	$	$	$	$
Net cash inflow
Ending cash balance	$	$	$	$
Minimum cash balance	$	$	$	$
Cumulative surplus (deficit)	$	$	$	$