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The cash budget is considered the primary forecasting tool when firms try to estimate their cash flows and figure out if they are likely to noed additional cash flows or to generate surplus cash. Consider the case of Mooney Equipment: Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one vear plus the first quarter of the next vean). The cash collection estimates are based on sales projections and expected collection of recelvables, The sales and cash collection estimates are shown in the following tatile (in milions of dollars): You also have the following information about Mooney Equipment: - In any given period, Moonev's purchases from suppliers generally account for 72% of the expected sales in the noxt perind, and wages, supplies, and taxes are expected to be 15% of next penodis sales. - In the third quarter, Mocney expects to expand one of its plants, which will require an additional $1,072 million investment. - Every quarter, Mooney pays 545 million in interest and dividend payments to long-term debt and equity investors. - Mooner prefers to keep a minimum target cash balance of at least $14 million at all times. Using the preceding information, answer the following questions: (Note: Round your answers to the nearest millionth dollat.) Using the preceding information, answer the following questions: (Note: Round your answers to the nearest millionth dollar) True or False: Based on the surplus or defict derived from the cash budget, managers negotiate for short-tern loans with banks. They often add a cushion to the difference between forecasted ending cash balance and the minimum target cash balance. False True

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