5. Hilal Co. has an average collection period (ACP) of 30 days and an operating cycle of 120 days. It has a policy of keeping at least RO 7,000 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of RO 12,000. Beginning receivables for the first quarter amount to RO 20,000. Sales for the first quarter are RO 100,000 and increase each quarter by 10%. The purchases amount represents 40% of the next quarter's forecasted sales. The quarterly wages and other expenses is RO 5,000. The capital expenditure occurs in the second quarter and equals to RO 100, 000. The interest and dividend payments are RO 5,000 The accounts payable period is 15 days. The beginning accounts payable is RO 15,000. (2 pts) Q3 Q4 a. What are cash collections for each quarter? Q1 Q2 Beginning Receivables Sales Cash collections Ending receivables What are cash disbursements for each quarter? (2 b. pts) Q1 Q2 Q3 Q4 Payment of amounts Wages and other expenses Capital expenditures Interest & Dividend payments Total cash disbursements C. (2 pts) Q4 What is the cumulative surplus (deficit) at the end of each quarter? Q1 Q2 Q3 Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) d. Assume that the short-term debt is borrowed at 8% compounded quarterly. What is the short-term financial plan? (2 pts) Q1 Q2 Q3 Q4 Beginning cash balance Net cash inflow New short-term borrowing Interest paid on short- term investment (loan) Short-term borrowing repaid Ending cash balance Minimum cash balance Cumulative surplus (deficit) Beginning short-term debt Change in short-term debt Ending short-term debt