Mooney Equ ipment is putting together its cash budget for the following year and has forecasted expected cash lections 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) 23 04 25 Sales $1,100 $1,400 $1,450 $1,250 $1,500 Total cash collections $1,100 $1,150$1,200 $1,200 You also have the following information about Mooney Equipment: In any given period, the next period, and wages, supplies, and taxes are expected to be 15% of next period's sales. Mooney's purchases from suppliers generally account for 78% of the expected sales in . In the third quarter, Mooney expects to expand on e of its plants, which will require an additional $1,078 million investment. Every quarter, Mooney pays $55 million in interest and dividend payments to long-term debt and equity investors $16 million at all times. Mooney prefers to keep a minimum target cash balance of at least Using the preceding information, answer the following questions hat is the net cash inflow that Mooney expects in the fourth quarter (4)730 inning 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 Q4)? . 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 inthe next year? rue or False: If a firm changes its credit polioy and allws custmers to pay in 30 days instead of 60 days, and everything else remains the same, the net cash flow in the next quarter is likely to deerease O True O False