10.00 points Wildcat, Inc., has estimated sales in millions) for the next four quarters as follows Q1 2 3 4 Sales 140 5160 5180 5210 Sales for the first quarter of the year after this one are projected at $155 million. Accounts receivable at the beginning of the year were S61 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normaly paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $10 million per quarter Wildcat plans a major capital outlay in the second quarter of $78 million. Finally, the company started the year with acash balance of 573 million and wishes to maintain a $30 milion minimum balance. a. Complete the following cash budget for Wildcat, Inc. (Enter your answers in millions. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g, 32.16.) ILDCAT, INC. Cash Budget (in millions) 02 21 03 04 Beginning cash balance Net cash inflow 73.00 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percant per quarter and can invest any exoess funds in short-term marketable securities at a rate of 2 percent per quarter b-1. Complete the following short-term financial plan for Wldcat, Inc. (Enter your answers in millions Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter "O wherever required. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) ILDCAT, INC. Short-Term Financial Plan in millions) 02 03 04 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 30.00 S 30.00 S 30.00 S 30.00 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Ending short-term investments Beginning short-term debt Ending short-term debt b-2. What is the net cash cost (total interest paid minus total investment income eamed) for the year? Enter your answers in millions. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Net cash cost 10.00 points Wildcat, Inc., has estimated sales in millions) for the next four quarters as follows Q1 2 3 4 Sales 140 5160 5180 5210 Sales for the first quarter of the year after this one are projected at $155 million. Accounts receivable at the beginning of the year were S61 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normaly paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $10 million per quarter Wildcat plans a major capital outlay in the second quarter of $78 million. Finally, the company started the year with acash balance of 573 million and wishes to maintain a $30 milion minimum balance. a. Complete the following cash budget for Wildcat, Inc. (Enter your answers in millions. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g, 32.16.) ILDCAT, INC. Cash Budget (in millions) 02 21 03 04 Beginning cash balance Net cash inflow 73.00 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percant per quarter and can invest any exoess funds in short-term marketable securities at a rate of 2 percent per quarter b-1. Complete the following short-term financial plan for Wldcat, Inc. (Enter your answers in millions Negative amounts should be indicated by a minus sign. Leave no cells blank be certain to enter "O wherever required. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) ILDCAT, INC. Short-Term Financial Plan in millions) 02 03 04 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 30.00 S 30.00 S 30.00 S 30.00 Ending cash balance Minimum cash balance Cumulative surplus (deficit) Ending short-term investments Beginning short-term debt Ending short-term debt b-2. What is the net cash cost (total interest paid minus total investment income eamed) for the year? Enter your answers in millions. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Net cash cost
