Sales for the first quarter of the year after this one are projected at $130 million Accounts recelvable at the beginning of the year were $51 million. Widcat has a 45 -day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 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 $11milili per quarter. Widcat plans a major capital outlay in the second quarter of $70 million. Finally, the company started the year with a cash balance of $68 million and wishes to maintain a minimum balance of $30 million a. Complete the following cash budget for Wilcat, Inc. (A negative answer should be indicated by o minus sign. Do not round intermediote colculotions and enter your onswers in millions, rounded to 2 decimal ploces, e.g., 32.16.) Whidcat, inc, has estimated sales (in millions) for the next four quarters as follows: Sales for the first quarter of the year after this one are projected at $130million. Accounts recelvable at the beginning of the year were $51 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 forecasted sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 20 percent of sales, Interest and dividend's are 511 million per quarter. Wildcat plans a major capital outlay in the second quarter of $70 million. Finally, the company started the year with a cash balance of $68 million and wishes to maintain a minimum balance of $30 million. a. Complete the following cash budget for Widcat, lnc. (A negative onswer should be indicoted by a minus sign. Do not round intermediate colculations and enter your answers in millions, rounded to 2 decimal places, e.9, 3216.) Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 4 percent per quarter and can invest any excess funds in short-term marketable securities at a rate of 3 percent per quarter. b-1. Complete the following short-term firlanclal plan for Widcat, Inc. (Leave no cells blank - be certain to enter " 07 wherever required. A negative onswer should be indicated by a minus sign. Do not round intermediate colculotions and enter your answers in millions, rounded to 2 decimal ploces, e.g., 32.16.) 2-2. 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. Do not round intermediate calculations and enter your answer in millions, rounded to 2 decimal places, e.g., 32.16.)
