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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 the 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 $1,320 $1,320 Sales Total cash collections Q2 $1,620 $1,370 Q3 $1,670 $1,420 24 $1,470 $1,420 25 $1,720 You also have the following information about Mooney Equipment: In any given period, Mooney's purchases from suppliers generally account for 78% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of next period's sales. In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,078 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 $16 million at all times. Using the preceding information, answer the following questions: -$247 million What is the net cash inflow that Mooney expects in the first quarter (Q1)? If Mooney is beginning this year with a cash balance of $39 million and expects to maintain- a minimum target cash balance of at least $16 million, what will be its likely cash balance at the end of the year (after (4)? What is the maximum investable funds that the firm expects to have in the next year? What is the largest cash deficit that the firm expects to suffer in the next year? -$1,076 million -$897 million -$1,256 million True or False: Based on the surplus or deficit derived from the cash budget, managers negotiate $1,794 million with banks. They often add a cushion to the difference between forecasted ending cash balance and the minimum target cash balance. True False tain at -$247 million -$247 million -$240 million -$244 million -$1,086 million -$247 million -$208 million -$1,778 million -$1,538 million - $452 million mes. -$247 million -$157 million -$190 million -$112 million -$224 million tiate for short-term loans ce and the minimum