PLEASE HELP!

Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows:

	Q1	Q2	Q3	Q4
Sales	$ 170	$ 185	$ 200	$ 225

Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period.

Wildcats purchases from suppliers in a quarter are equal to 45 percent of the next quarters forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $14 million per quarter.

Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $30 million minimum balance.

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.

a-1.

Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $40 million. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions of dollars rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)

WILDCAT, INCORPORATED

Short-Term Financial Plan

(in millions)

Q1 Q2 Q3 Q4

Target cash balance $40.00 $40.00 $40.00 $40.00

Net cash inflow

New short-term investments

Income from short-term investments

Short-term investments sold

New short-term borrowing

Interest on short-term borrowing

Short-term borrowing repaid

Ending cash balance

Minimum cash balance

Cumulative surplus (deficit)

Beginning short-term investments

Ending short-term investments

Beginning short-term debt

Ending short-term debt

a-2.	What is the net cash cost (total interest paid minus total investment income earned) for the year? (Do not round intermediate calculations and enter your answer in millions of dollars rounded to 2 decimal places, e.g., 32.16.)

b-1.

Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $20 million. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions of dollars rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)

b-2.	What is the net cash cost (total interest paid minus total investment income earned) for the year? (Do not round intermediate calculations and enter your answer in millions of dollars rounded to 2 decimal places, e.g., 32.16.)

\begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ WILDCAT, INCORPORATED } \\ \hline \multicolumn{9}{|c|}{ Short-Term Financial Plan } \\ \hline \multicolumn{9}{|c|}{ (in millions) } \\ \hline & \multicolumn{2}{|c|}{ Q1 } & \multicolumn{2}{|c|}{ Q2 } & \multicolumn{2}{|c|}{ Q3 } & \multicolumn{2}{|c|}{ Q4 } \\ \hline Target cash balance & $ & 40.00 & $ & 40.00 & $ & 40.00 & $ & 40.00 \\ \hline \multicolumn{9}{|l|}{ Net cash inflow } \\ \hline \multicolumn{9}{|l|}{ New short-term investments } \\ \hline \multicolumn{9}{|c|}{ Income from short-term investments } \\ \hline \multicolumn{9}{|l|}{ Short-term investments sold } \\ \hline \multicolumn{9}{|l|}{ New short-term borrowing } \\ \hline \multicolumn{9}{|c|}{ Interest on short-term borrowing } \\ \hline \multicolumn{9}{|l|}{ Short-term borrowing repaid } \\ \hline \multicolumn{9}{|l|}{ Ending cash balance } \\ \hline \multicolumn{9}{|l|}{ Minimum cash balance } \\ \hline \multicolumn{9}{|l|}{ Cumulative surplus (deficit) } \\ \hline \multicolumn{9}{|c|}{ Beginning short-term investments } \\ \hline \multicolumn{9}{|c|}{ Ending short-term investments } \\ \hline \multicolumn{9}{|l|}{ Beginning short-term debt } \\ \hline Ending short-term debt & & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Net cash cost & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ WILDCAT, INCORPORATED } \\ \hline \multicolumn{9}{|c|}{ Short-Term Financial Plan } \\ \hline \multicolumn{9}{|c|}{ (in millions) } \\ \hline & \multicolumn{2}{|c|}{ Q1 } & \multicolumn{2}{|c|}{ Q2 } & \multicolumn{2}{|c|}{ Q3 } & \multicolumn{2}{|c|}{ Q4 } \\ \hline Target cash balance & $ & 20.00 & $ & 20.00 & $ & 20.00 & $ & 20.00 \\ \hline \multicolumn{9}{|l|}{ Net cash inflow } \\ \hline \multicolumn{9}{|l|}{ New short-term investments } \\ \hline \multicolumn{9}{|c|}{ Interest from short-term investments } \\ \hline \multicolumn{9}{|l|}{ Short-term investments sold } \\ \hline \multicolumn{9}{|l|}{ New short-term borrowing } \\ \hline \multicolumn{9}{|c|}{ Interest on short-term borrowing } \\ \hline \multicolumn{9}{|l|}{ Short-term borrowing repaid } \\ \hline \multicolumn{9}{|l|}{ Ending cash balance } \\ \hline \multicolumn{9}{|l|}{ Minimum cash balance } \\ \hline \multicolumn{9}{|l|}{ Cumulative surplus (deficit) } \\ \hline \multicolumn{9}{|c|}{ Beginning short-term investments } \\ \hline \multicolumn{9}{|c|}{ Ending short-term investments } \\ \hline \multicolumn{9}{|l|}{ Beginning short-term debt } \\ \hline Ending short-term debt & & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Net cash cost & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ WILDCAT, INCORPORATED } \\ \hline \multicolumn{9}{|c|}{ Short-Term Financial Plan } \\ \hline \multicolumn{9}{|c|}{ (in millions) } \\ \hline & \multicolumn{2}{|c|}{ Q1 } & \multicolumn{2}{|c|}{ Q2 } & \multicolumn{2}{|c|}{ Q3 } & \multicolumn{2}{|c|}{ Q4 } \\ \hline Target cash balance & $ & 40.00 & $ & 40.00 & $ & 40.00 & $ & 40.00 \\ \hline \multicolumn{9}{|l|}{ Net cash inflow } \\ \hline \multicolumn{9}{|l|}{ New short-term investments } \\ \hline \multicolumn{9}{|c|}{ Income from short-term investments } \\ \hline \multicolumn{9}{|l|}{ Short-term investments sold } \\ \hline \multicolumn{9}{|l|}{ New short-term borrowing } \\ \hline \multicolumn{9}{|c|}{ Interest on short-term borrowing } \\ \hline \multicolumn{9}{|l|}{ Short-term borrowing repaid } \\ \hline \multicolumn{9}{|l|}{ Ending cash balance } \\ \hline \multicolumn{9}{|l|}{ Minimum cash balance } \\ \hline \multicolumn{9}{|l|}{ Cumulative surplus (deficit) } \\ \hline \multicolumn{9}{|c|}{ Beginning short-term investments } \\ \hline \multicolumn{9}{|c|}{ Ending short-term investments } \\ \hline \multicolumn{9}{|l|}{ Beginning short-term debt } \\ \hline Ending short-term debt & & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Net cash cost & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ WILDCAT, INCORPORATED } \\ \hline \multicolumn{9}{|c|}{ Short-Term Financial Plan } \\ \hline \multicolumn{9}{|c|}{ (in millions) } \\ \hline & \multicolumn{2}{|c|}{ Q1 } & \multicolumn{2}{|c|}{ Q2 } & \multicolumn{2}{|c|}{ Q3 } & \multicolumn{2}{|c|}{ Q4 } \\ \hline Target cash balance & $ & 20.00 & $ & 20.00 & $ & 20.00 & $ & 20.00 \\ \hline \multicolumn{9}{|l|}{ Net cash inflow } \\ \hline \multicolumn{9}{|l|}{ New short-term investments } \\ \hline \multicolumn{9}{|c|}{ Interest from short-term investments } \\ \hline \multicolumn{9}{|l|}{ Short-term investments sold } \\ \hline \multicolumn{9}{|l|}{ New short-term borrowing } \\ \hline \multicolumn{9}{|c|}{ Interest on short-term borrowing } \\ \hline \multicolumn{9}{|l|}{ Short-term borrowing repaid } \\ \hline \multicolumn{9}{|l|}{ Ending cash balance } \\ \hline \multicolumn{9}{|l|}{ Minimum cash balance } \\ \hline \multicolumn{9}{|l|}{ Cumulative surplus (deficit) } \\ \hline \multicolumn{9}{|c|}{ Beginning short-term investments } \\ \hline \multicolumn{9}{|c|}{ Ending short-term investments } \\ \hline \multicolumn{9}{|l|}{ Beginning short-term debt } \\ \hline Ending short-term debt & & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Net cash cost & \\ \hline \end{tabular}