Intro It is the beginning of January. Actual sales for the previous quarter (Q4) and estimated sales for the next five quarters are as follows (in $ million): Quarter Q4 Q1 Q2 Q3 Q4 Q1 Sales 78 63 68 70 93.6 75 You collect 40% of sales in the quarter of the sale, and the remainder in the next quarter. You expect to always spend 40% of the following quarter's sales on purchases of components from suppliers. You pay 80% of purchases in the quarter of the purchase, and the reminader in the next quarter. Wages and other expenses add up to 35% of each quarter's sales. You have to pay $4 million in interest and dividends each quarter, and plan to spend $50 million on new machinery in Q2. You start the year with $3 million in cash. Any additional short-term borrowing will be done at a quarterly interest rate of 1%. Attempt 1/10 for 9.1 pts. Part 1 Add a worksheet "Collections to the spreadsheet and some rows showing sales (Q4 to Q4), beginning receivable balances, current sales collected and total cash collected for Q1 to Q4. What is your expected total cash collection in (future) Q4 (in $ million)? 0+ decimal Submit Part 2 Attempt 1/10 for 9.1 pts. Add a worksheet "Disbursements and some rows showing sales (Q1 to Q1), purchases (Q4 to Q4), beginning payable balances, current purchases paid, wages & other expenses, interest and dividends, net capital spending and total cash disbursements for Q1 to Q4. What is your expected total cash disbursement in (future) Q4 (in $ million)? 0+ decimals Submit Attempt 1/10 for 9.1 pts. Part 3 Add another worksheet to your spreadsheet and label it "Cash budget". Add rows for beginning cash balance, cash collections, cash disbursements and ending cash balance for Q1 to Q4. What is your expected cash balance at the end of Q4 (in $ million)? 2+ decimals Submit Part 4 Attempt 1/10 for 9.1 pts. Company policy is to borrow just enough every quarter to prevent the cash balance from becoming negative. Rename "Ending cash balance" to "Intermediate cash balance" on worksheet "Cash budget" and add four rows for short-term debt issuance, ending debt, additional interest payments and ending cash balance. What is the ending cash balance in Q4 (in $ million)? 1+ decimals Submit Attempt 1/10 for 9.1 pts. Part 5 The company also has a policy of repaying short-term debt as much as cash flows allow. Insert another row for debt repayment between debt issuance and ending cash balance, and add two rows for beginning debt and ending debt. What is the ending cash balance in Q4 (in $ million)? 0+ decimals Submit
