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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 flve quarters (one year

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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 flve quarters (one year plus the first quarter of next year). The cash collection estimates are based on sales projections and expected collection of recelvables. 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: - You are at the end of the current year, and Q1 is the next period. - In any given period, Mooney's purchases from suppliers generally account for 78% of the expected sales in the next period, and wages, supplles, and taxes are expected to be 15% of the 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 $55 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 this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole dollar.) True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 doys and everything else remains the same, the net cash flow in the next quarter is likely to decrease. Using this information, complete the following table by making necessary calculations. (Note: Round intermediate calculations to the nearest whole doliar.) True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days and everything else remains the same, the net cash flow in the next quarter is likely to decrease. False True

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