10) Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:

Sales (by quarter) (Q1)$110 (Q2)$130 (Q3)$150 (Q4)$180

Sales for the first quarter of the year after this one are projected at $125 million. Accounts receivable at the beginning of the year were $49 million. Wildcat has a 45-day collection period

Wildcats purchases from suppliers in a quarter are equal to 40 percent of the next quarters forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 20 percent of sales. Interest and dividends are $11 million per quarter.

Wildcat plans a major capital outlay in the second quarter of $78 million. Finally, the company started the year with a $67 million cash balance and wishes to maintain a $30 million minimum balance.

a. Complete the following cash budget for Wildcat, Inc. (Do not round intermediate calculations and enter answers in millions rounded to 2 decimal places. Be sure to enter 0 wherever required.)

Q1 Q2 Q3 Q4

Target cash balance $67.00

Net cash inflow

Ending cash balance

Minimum cash balance -30.00 -30.00 -30.00 -30.00

Cumulative surplus (deficit)

b-1. 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. (Do not round intermediate calculations and enter answers in millions rounded to 2 decimal places. Be sure to enter 0 wherever required.)

b-2 What is the net cash cost (total interest paid minus total investment income earned) for the year? (Do not round intermediate calculations and enter answers in millions rounded to 2 decimal places. Be sure to enter 0 wherever required.)

Net cash cost:

*please show how to do this in Excel. Much appreciated and thank you.