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

	Q1			Q2			Q3			Q4
Sales	$	110		$	130		$	150		$	180

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%u2019s purchases from suppliers in a quarter are equal to 40 percent of the next quarter%u2019s forecast 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. (Enter your answers in millions. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

WILDCAT, INC. 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 on 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 for the year under this target cash balance? (Negative amount should be indicated by a minus sign. Enter your answers in millions. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Net cash cost

$

b-1.

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

WILDCAT, INC. Short-Term Financial Plan (in millions)
		Q1		Q2		Q3		Q4
Target cash balance		$ 20.00		$ 20.00		$ 20.00		$ 20.00
Net cash inflow
New short-term investments
Income on 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 for the year under this target cash balance? (Enter your answers in millions. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Net cash cost

$