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Mooney Equipment is putting together ills cash budget for the following year and has forecasted expected cash collections over the next five quartos (one year

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Mooney Equipment is putting together ills cash budget for the following year and has forecasted expected cash collections over the next five quartos (one year plume the first quaver of the next year). The cash collection estimates are based on sales projection and expected collection of receivables. The sales and ash collection esthetes are shown in the following table (in millions of dollars): You also have the following information about Mooney Equipment: In any given period, Mooney's purchases from suppliers generally account for 80% of the expected sales in the next period, and wages, supplies, and taxes are expected tube 15% of next period's sales. In the third quarter, Mooney expects to expand one of its plants, which win require an additional $1, 080 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: what is the net cash inflow that Mooney expects in re second quarter (Q2)? If Mooney is bailing this year with a cash balance of $40 million and expects to maintain a minimum target cash balance of at least $16 million, what will be its likely cast: 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 re next year? True or False: One of the firms supplies offers s payment terms of 3/10 net 30 and the other offers net 30. If the firm chooses to go with the supplier that offers 3/10, net 20, and everything else remains the same, the firm's net cash flow is likely to increase in a monthly cash budget after a few months. True False

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