EXERCISE: CASH MANAGEMENT Wildcat, Inc. Want to make cash budget for next year period. Below are the informations gathered: Sales estimates (in millions) .QI-210; 02-180:03 = 245:04 280: 01 next year=240 Accounts receivable Beginning receivables S68 Average collection period -45 days Accounts payable Purchases -50% of next quarter's sales Beginning payables S40 Accounts payable period -30 days Other expres Wages, taxes, and other expense are 25% of sales Interest and dividend payments are $12 A major capital expenditure of 580 is expected in the second quarter The initial cash balance is 564, and the company maintains a minimum cash balance ofte 03 04 Wildcat, Inc. Cash Collection in millions 01 02 Sales Forecast Beginning Receivables Ending Receivables Cash Collections (Begin AR+ (Sales-End AR) 03 04 Wildcat, Inc. Cash Disbursements (in millions) 01 02 Payment of purchase Wages, taxes and other expenses Capital expenditures Interest and dividend payments Total cash disbursements Wildcat, Inc Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance Net cash inflow New short-term borrowine Interest 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