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Wildcat Inc. has estimated sales in millions) for the next four quarters as follows: Q Q2 Q3 Q4 Sales $120 $140 $160 $190 Sales for

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Wildcat Inc. has estimated sales in millions) for the next four quarters as follows: Q Q2 Q3 Q4 Sales $120 $140 $160 $190 Sales for the first quarter of the following year are projected at $135 million. Accounts receivable at the beginning of the year were $53 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 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 $12 million per quarter Wildcat plans a major capital outlay in the second quarter of $72 million. Finally, the company started the year with a $69 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 "O" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) WILDCAT, INC. Short-Term Financial Plan (in millions) Q1 Q2 5 40.00 $ 40.00 $ 03 40.00 04 40.00 Target cash balance Net cash Inflow New short-term investments Income on short-term investments Short-term investments sold New short-term borrowing answers to 2 decimal places, e.g. 3216.) WILDCAT INC. Short Term Financial Plan (in millions) Q1 Q2 Q3 Q4 $ 40.00 $ Target cash balance Net cash inflow 40.00 $ 40.00 $ 40.00 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) -40.00 140.00 40.00 40.00 Beginning short-term investments Ending short-term investments Beginning short-term debt Ending short-term debt 1-2. What is the net cash cost for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places. e.g. 32.16.) Net cash cost w 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 "o" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) WILDCAT.INC Short-Term Financial Plan (in millions) Q1 Q2 Q3 04 tes S 20.00 $ 20.00 $ 20.00 $ 20.00 Target cash balance 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) -20.00 -20.00 -20.00 -20.00 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 answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.... 32.16.) C aw Short-Term Financial Plan (in millions) Q1 02 $ 20.00 $ 20.00 $ Q3 04 20.00 $ 20.00 Target cash balance 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) -20.00 -20.00 -20.00 -20.00 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 answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net cash cost Wildcat Inc. has estimated sales in millions) for the next four quarters as follows: Q Q2 Q3 Q4 Sales $120 $140 $160 $190 Sales for the first quarter of the following year are projected at $135 million. Accounts receivable at the beginning of the year were $53 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 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 $12 million per quarter Wildcat plans a major capital outlay in the second quarter of $72 million. Finally, the company started the year with a $69 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 "O" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) WILDCAT, INC. Short-Term Financial Plan (in millions) Q1 Q2 5 40.00 $ 40.00 $ 03 40.00 04 40.00 Target cash balance Net cash Inflow New short-term investments Income on short-term investments Short-term investments sold New short-term borrowing answers to 2 decimal places, e.g. 3216.) WILDCAT INC. Short Term Financial Plan (in millions) Q1 Q2 Q3 Q4 $ 40.00 $ Target cash balance Net cash inflow 40.00 $ 40.00 $ 40.00 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) -40.00 140.00 40.00 40.00 Beginning short-term investments Ending short-term investments Beginning short-term debt Ending short-term debt 1-2. What is the net cash cost for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places. e.g. 32.16.) Net cash cost w 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 "o" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) WILDCAT.INC Short-Term Financial Plan (in millions) Q1 Q2 Q3 04 tes S 20.00 $ 20.00 $ 20.00 $ 20.00 Target cash balance 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) -20.00 -20.00 -20.00 -20.00 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 answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.... 32.16.) C aw Short-Term Financial Plan (in millions) Q1 02 $ 20.00 $ 20.00 $ Q3 04 20.00 $ 20.00 Target cash balance 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) -20.00 -20.00 -20.00 -20.00 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 answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net cash cost

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