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

Q$1$ Q$2$ Q$3$ Q$4$

Sales $ $145$ $ $165$ $ $185$ $ $215$

Sales for the first quarter of the year after this one are projected at $$160$ million. Accounts receivable at the beginning of the year were $$63$ 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 dividends are $$12$ million per quarter.

Wildcat plans a major capital outlay in the second quarter of $$92$ million. Finally, the company started the year with a cash balance of $$74$ million and wishes to maintain a minimum balance of $$30$ million.

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, rounded to $2$ decimal places, e$.$g$.23\mathrm{.}16.)$

WILDCAT, INC.

Cash Budget

$($in millions$)$

Q$1$ Q$2$ Q$3$ Q$4$

Beginning cash balance $$74\mathrm{.}00---$

Net cash inflow $----$

Ending cash balance $----$

Minimum cash balance $30\mathrm{.}0030\mathrm{.}0030\mathrm{.}0030\mathrm{.}00$

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. $($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 pWILDCAT, INC.

Short$-$Term Financial Plan

$($in millions$)$

Q$1$ Q$2$ Q$3$ Q$4$

Minimum cash balance $$30\mathrm{.}00$ $$30\mathrm{.}00$ $$30\mathrm{.}00$ $$30\mathrm{.}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 $----$

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. Do not round intermediate calculations and enter your answer in millions, rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$