Cash Balance for Masson Corporation. The Masson Corporation has a 60-day

| June 9, 2016

Question
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)

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