Piano Man, Inc, has a 32 day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivable balance of $218 million and has developed the following sales and cash disbursement budgets in millions :

Q1 Q2. Q3 Q4

Sales $378. $468. $570. $522

total cash disbursement $318. $408. $726. $450

Complete the following cash budget for the company. What conclusions do you draw?

Q1 Q2 Q3

Beginning receivables

Sales

Cash collections

Ending receivables

Total cash collections

Total cash disbursement

Net cash inflow

Beginning cash balance

Net cash inflow

Ending cash balance

Minimum cash balance

Cumulative surplus (deficit)

Please explain how the numbers came from. For example, cash collection = beginning receivable + ( ) ( quarter 1 sales)