Answer Happy

The XYZ company specializes in homemade biscuits and receives all income from sales. The sales revenue estimates (in million $) for the company are as follows: Q1 = 400. Q2 = 450, Q3 = 500. Q4 = 600. Q1 of next year = 600. The average collection period for accounts receivables is 60 days. Beginning receivables (Q1 beginning) is $250 million. The purchases are 70% of next quarter sales. Beginning payables (Q1 beginning) is $120 million. The accounts payable period is 60 days. Wages and other expenses every quarter are 25% of the sales revenue of that quarter. A CAPEX of $40 million is planned end of Quarter 3. Dividends and interest payments are $15 million every quarter. There are no other expenses. The beginning cash balance (Q1 beginning) is $40 million. How much will be the cash balance at the end of Quarter 3? [5]