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): 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 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 $1.074 million investment Every quarter, Mooney pays $50 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 $15 million at all times. Using the preceding information, answer the following questions: 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 $37 million and expects to maintain a cash balance of at least $15 million what will be its Likely cash balance at the end of the year (after Q4)? What is the maximum investment funds that the firm expects to have in the next year? What is the largest cash defat rat the firm expects to suffer in the next year? True or False If a firm changes its credit policy and allowed customer to pay in 90 days instead of 60 days and everything else reaming the same the net cash flow in the next quarter is likely to decrease. False True True