At end of Q1 right now.
Purchases are 74% of expected sales next qt
Taxes are 15% of next period's sales
in Q3, Mooney expects to expand one plant which requires additional 1,074 million investment Every quarter, Mooney pays $60 million in int and div pmts to long term debt and equity holders. Mooney prefers to keep a min balance of $15 million at all times. A. What is the next cash inflow in Q3
If Mooney is beginning this year with a cash balance of $37 million and expects to keep a min cash balance of at least $15, what is likely cash balance in Q4? What is the maximum investable funds firm expects next year? What is the target cash deficit firm expects to suffer next year.
Purchases (.74 S nextQ)1443148013321517
Wages Tax Supplie 15% *S next293 300 270 307.5
Expansion 0 01074 0
Int & Div 60 60 60 60
Net Cash Position -146-140-986-135
Beg Cash 37-109-249-1235
Cum Cash -109-249-1235-1370
Target Min 15151515
Surplus or Borrowing-124-264-12501385
Ending Cash 15151515