Cash Balance for Masson Corporation.

Cash Balance for Masson Corporation.

Cash Balance for Masson Corporation. The Masson Corporation has a 60-day average collection period and wishes to maintain a $5 million minimum cash balance. Based on this and the information below, complete the following cash budget. What conclusions do you draw?

MASSON CORPORATION

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

180

Net cash inflow




Beginning cash balance

$ 5




Net cash inflow




Ending cash balance




Minimum cash balance



Cumulative surplus (deficit)




Price: £ 45

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