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4. Cash budget Mooney Equipment is putting together its cash budget for the following year...

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4. Cash budget Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus the first quarter of next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash collection estimates are shown in the following table (in millions of dollars): Q1 $1,650 Q2 $1,950 Q3 $2,000 04 $1,800 QS $2,050 Sales Total cash collections $1,650 $1,700 $1,750 $1,750 You also have the following information about Mooney Equipmenti . You are at the end of the current year, and Q1 is the next period. . In any given period, Mooney's purchases from suppliers generally account for 30% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of the next period's sales, . In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,090 million investment Every quarter, Mooney pays $45 million in interest and dividend payments to long-term debt and equity investors Mooney prefers to keep a minimum target cash balance of at least $16 million at all times

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