Hello. I am looking for homework help in Corporate Finance.#2
E' '3 . 76%318204 Award: 20.00 points Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: 01 [)2 Q3 Q4 Sales 3200 $220 $240 8270 Sales for the rst quarter of the year after this one are projected at $215 million. Accounts receivable at the beginning of the year were $85 million. Wildcat has a 45day collection period. Wildcat's purchases from suppliers in a quarter are equal to 50 percent of the next quarter's forecasted sales, and suppliers are normally 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 $96 million. Finally, the company started the year with a cash balance of $85 million and wishes to maintain a minimum balance of $30 million. a. Complete the following cash budget for Wildcat, Inc. (Enter your answers in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) WILDCA'I", ENC. Cash Budget (in millions) Q1 92 . Q3 , Q_,,... E' '3 .. 76%318:04 decimal places, e.g., 32.16.) WILDCAT, INC. Cash Budget (in millions) 01 92 03 EM Beginning cash balance 3 85.00 s S $ Net cash inow Ending cash balance 3 s S 3 Minimum cash balance 30.00 30.00 30.00 30.00 Cumulative surpius (decit) $ $ S s 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. b-1. Complete the following short-term nancial plan for Wildcat, Inc. (Enter your answers in millions. A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) WILDCAT, INC. Short-Term Financial Plan (in millions} 01 02 QB 04 Minimum cash balance 3 30.00 S 30.00 S 30.00 $ 30.00 Net cash inow New shorteterm investments Income from short-term investments Short-term investments sold New short-term borrowing Interest on shorteterm borrowing Short-term borrowing repaid Ending cash balance $ 3 S 3 Minimum cash balance Cumulative sutpius (decit) Beginning short-term investments Ending shorHerm investments Beginning shortrterm debt Ending short-term debt 6969696969 (Denise-en (penance \"$96669 b-2. What is the net cash cost (total interest paid minus total investment income earned) for the year? (A negative answer should be indicated by a minus sign. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net cash cost $ References Worksheet Difculty: 2 tntermediate Section: 18.4 The Cash Budget
