Question 3

Digital Solutions Inc is preparing its cash collection summary for 2018. Digital ended 2017 with cash of

$81 million, and managers need to keep a cash balance of at least $75 million for operations.

Collections from customers are expected to total $11,284 million during 2018, and payments for the cost of services should reach $6,166 million. Operating expense payments are budgeted at $2,543.