Question
The Mason Corporation has a 30-day average collection period and wishes to maintain a $5 million minimum cash balance. Based on this and the information
The Mason Corporation has a 30-day average collection period and wishes to maintain a $5 million minimum cash balance. Based on this and the information below, answer below questions
Mason Corp Cash Budget in millions
| q1 | q2 | q3 | q4 | |
|---|---|---|---|---|
| Beginning receivables | 120 | |||
| sales | 90 | 120 | 150 | 120 |
| Cash collections | ||||
| Ending receivables | ||||
| Total cash collections | ||||
| Total cash disbursements | (80) | (160) | (180) | (160) |
| Net cash inflow | ||||
| Beginning cash balance | 5 | |||
| Net cash inflow | ||||
| Ending cash balance | ||||
| Minimum cash balance | ||||
| Cumulative surplus (deficit) | ||||
What is the ending receivables in the second quarter (Q2)?
| a. | $60 million | |
| b. | $80 million | |
| c. | $40 million | |
| d. | $90 million |
What is net cash inflow in the third quarter (Q3)?
| a. | -$50 million | |
| b. | $-40 million | |
| c. | -$20 million | |
| d. | -$60 million |
What is the cumulative surplus (deficit) in the fourth quarter (Q4)?
| a. | -$60 million | |
| b. | -$40 million | |
| c. | $10 million | |
| d. | $-20 million |
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
