Q1 choices -1,005mill, -157mill, -164mill, -151mill

Q2 choices -285mill, -128mill, -1,290mill, -1,441mill

Q3 choices -142mill, -71mill, -121mill, -99mill

Q4 choices -728mill, -873mill, -1,455mill, -1,018mill

12. Cash budget The cash budget is considered the primary forecasting tool when firms try to estimate their cash flows and figure out if they are likely to additional cash flows or to generate surplus cash. Consider the case of Mooney Equipment: You also have the following information about Mooney Equipment: - In any given period, Mooney's purchases from suppliers generally account for 72% 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 $1,072 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 $14 million at all times. Using the preceding information, answer the following questions: (Note: Round your answers to the nearest millionth dollar.) 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. True False 12. Cash budget The cash budget is considered the primary forecasting tool when firms try to estimate their cash flows and figure out if they are likely to additional cash flows or to generate surplus cash. Consider the case of Mooney Equipment: You also have the following information about Mooney Equipment: - In any given period, Mooney's purchases from suppliers generally account for 72% 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 $1,072 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 $14 million at all times. Using the preceding information, answer the following questions: (Note: Round your answers to the nearest millionth dollar.) 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. True False