Because Greenwell has a 60-day collection period, only those sales made in the first 30 days of the quarter will be collected in the same quarter. Total cash collections in the first quarter will thus equal 30/90 = 1⁄3 of sales plus beginning receivables, or 1⁄3×$150+240=$290.
Ending receivables for the first quarter (and the second-quarter beginning receivables) are the other 2⁄3 of sales, or 2⁄3×$150=$100. The remaining calculations are straightforward, and the completed budget follows.

GREENWELL CORPORATION
Cash Budget
(in millions)

The primary conclusion from this schedule is that, beginning in the third quarter, Greenwell’s cash surplus becomes a cash deficit. By the end of the year, Greenwell will need to arrange for $40 million in cash beyond what will be available.