Prepare donn communications cash budget

Assignment Help Financial Accounting

Reference no: EM13943986

Donn Communications, Inc., is preparing its cash budget for 2012. Donn ended 2011 with cash of $88 million, and managers need to keep a cash balance of at least $79 million for operations.

Collections from customers are expected to total $11,323 million during 2012, and payments for the cost of services and products should reach $6,185 million. Operating expense payments are budgeted at $2,557 million.

During 2012, Donn expects to invest $1,823 million in new equipment and sell older assets for $151 million. Debt payments scheduled for 2012 will total $611 million. The company fore- casts net income of $884 million for 2012 and plans to pay dividends of $316 million.

Prepare Donn Communications' cash budget for 2012. Will the budgeted level of cash receipts leave Donn with the desired ending cash balance of $79 million, or will the company need additional financing? If so, how much?

Reference no: EM13943986

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