S18-15 Calculating the Cash Budget (L03) Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: 01 02 03 04 Sales$170 $185 $200 $225 Sales for the first quarter of the following year are projected at $180 million Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's 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 a. Complete the following cash budget for Wildcat, Inc. (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e... 32.16.) Answer is not complete. WILDCAT, INC. Cash Budget (in millions Q2 Q3 54.00 $ 73.00 $ 36.00 $ 18.95 -55.05] Q1 $ Q4 62.00% Beginning cash balance Net cash inflow Ending cash balance Minimum cash balanco Cumulative surplus (deficit) 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 financial plan for Wildcat, Inc. (A negative answer should be indicated by a minus sign. Leave no cells blank be certain to enter to wherever required. Do not round Intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places,... 32.16) Study Mode: Homework Chapt8 Check my work mode: This shows what is 10 deficit) 10 points 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 1-1. Complete the following short-term financial plan for Wildcat. Inc. (A negative answer should be indicated by minus sign. Leave no cells blank - be certain to enter " wherever required. Do not found Intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e... 32.16) 04 Answer is not complete. WILDCAT, INC. Short-Term Financial Plan in millions Q1 Q2 03 Target cash balance 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 $ O IS 05 0 Beginning short-term Investments Ending short-term Lnvestments Beginning short carm debt Ending short-term dett $ - What is the net cash cost for the year? (A negative answer should be 2. indicated by a mine sig. Do not found intermediate calculations and enter your answer in milions, not dollars, rounded to 2 decimal place eg. 32.16) Ch
