1. Wildcat Inc. has estimated sales (in million) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales RM210 RM180 RM245 RM280 Sales for the first quarter of the year after this one are projected at RM240 million. Accounts receivable at the beginning of the year were RM68 million. Wildcat has a 45-day collection period. Wildcats purchases from suppliers in a quarter are equal to 45 percent of the next quarters forecast sales, and suppliers are normally paid in 36 days. Wages, taxes and other expenses run about 25 percent of sales. Interest and dividends are RM12 million per quarter. Wildcat plans a major capital outlay in the second quarter of RM80 million. Finally, the company started the year with a RM64 million cash balance and wishes to maintain a RM30 million minimum balance. a) Complete a cash budget for Wildcat by filling in the following: WILDCAT INC. Cash Budget (in millions) Q1 Q2 Q3 Q4 Target cash balance Net cash flow Ending cash balance Minimum cash balance RM30 30 Cumulative surplus (deficit) b) Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can invest any excess funds in short-term marketable securities at a rate of 2 percent per quarter. Prepare a short-term financial plan by filling in the following schedule. What is the net cash cost (total interest paid minus total investment income earned) for the year? WILDCAT INC. Short-Term Financial Plan (in millions) Q1 Q2 Q3 Q4 Target cash balance Net cash inflow New short-term investments Income from short-term investments Short-term investments sold New short-term borrowing Interest on short-term borrowing Short-term borrowing repaid Ending cash balance RM64 Minimum cash balance Cumulative surplus (deficit) 30 Beginning short-term investments Ending short-term investments Beginning short-term debt Ending short-term debt