Sales for the first quarter of the year after this one are projected at $$125$ million.

Accounts receivable at the beginning of the year were $$49$ million. Wildcat has a $45-$day

collection period.

Wildcat's purchases from suppliers in a quarter are equal to $40$ 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 $$78$ million. Finally, the

company started the year with a $$67$ million cash balance and wishes to maintain a $$40$

million minimum balance.

a$-1.$ 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. Complete the following short$-$term

financial plan for Wildcat. $($Leave no cells blank $-$ be certain to enter $"0"$ wherever

required. A negative answer should be indicated by a minus sign. Do not round

intermediate calculations and enter your answers in millions, rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

a$-2.$ What is the net cash cost $($total interest paid minus total investment income earned$)$

for the year under this target cash balance? $($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$.,32\mathrm{.}16.)$

b$-1.$ Complete the following short$-$term financial plan assuming that Wildcat maintains a

minimum cash balance of $$20$ million. $($Leave no cells blank $-$ be certain to enter

$"0"$ wherever required. A negative answer should be indicated by a minus sign.

Do not round intermediate calculations and enter your answers in millions,

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$-2.$ What is the net cash cost $($total interest paid minus total investment income earned$)$

for the year under this target cash balance? $($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$.,32\mathrm{.}16.)$