Need help with the inputs that are incorrect!!!
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $175 $195 $215 $245 Sales for the first quarter of the year after this one are projected at $190 million. Accounts receivable at the beginning of the year were $75 million. Wildcat has a 45-day 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 20 percent of sales. Interest and dividends are $11 million per quarter. Wildcat plans a major capital outlay in the second quarter of $98 million. Finally, the company started the year with a cash balance of $80 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. WILDCAT, INC. Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance 80.00 $ 103 36.50 71 -66.50 34.50 Net cash inflow 23 64 Ending cash balance $ 104 36.50 71 135 Minimum cash balance -30.00 -30.00 -30.00 -30.00 Cumulative surplus (deficit) $ 73 6.50 41 105 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. tA tA b-1. Complete the following short-term financial 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 "O" 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) Q1 Q2 30.00 $ Q3 30.00 $ Minimum cash balance 30.00 30.00 $ Net cash inflow -66.50 34.50 23 64 New short-term investments -24.20 -34.89 -64.66 Income from short-term 1.2 0 investments Short-term investments sold New short-term borrowing 0 Interest on short-term 0 borrowing Short-term borrowing repaid 0 0 30 $ Ending cash balance $ 30 30 30 Minimum cash balance -30 -30 -30 -30 Cumulative surplus (deficit) 0 Beginning short-term investments 0 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 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 $ 04 tA tA tA tA tA. A tA tA tA tA- tA tA- Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $175 $195 $215 $245 Sales for the first quarter of the year after this one are projected at $190 million. Accounts receivable at the beginning of the year were $75 million. Wildcat has a 45-day 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 20 percent of sales. Interest and dividends are $11 million per quarter. Wildcat plans a major capital outlay in the second quarter of $98 million. Finally, the company started the year with a cash balance of $80 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. WILDCAT, INC. Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance 80.00 $ 103 36.50 71 -66.50 34.50 Net cash inflow 23 64 Ending cash balance $ 104 36.50 71 135 Minimum cash balance -30.00 -30.00 -30.00 -30.00 Cumulative surplus (deficit) $ 73 6.50 41 105 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. tA tA b-1. Complete the following short-term financial 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 "O" 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) Q1 Q2 30.00 $ Q3 30.00 $ Minimum cash balance 30.00 30.00 $ Net cash inflow -66.50 34.50 23 64 New short-term investments -24.20 -34.89 -64.66 Income from short-term 1.2 0 investments Short-term investments sold New short-term borrowing 0 Interest on short-term 0 borrowing Short-term borrowing repaid 0 0 30 $ Ending cash balance $ 30 30 30 Minimum cash balance -30 -30 -30 -30 Cumulative surplus (deficit) 0 Beginning short-term investments 0 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 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 $ 04 tA tA tA tA tA. A tA tA tA tA- tA tA
