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)
