Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:
Q1Q2Q3Q4
Sales$ 155$ 175$ 195$ 225
Sales for the first quarter of the year after this one are projected at $170 million. Accounts receivable at the beginning of the year were $67 million. Wildcat has a 45-day collection period.
Brett H0: or Q. Shale wildcar, lncu bas esrimared sales (in millions) {01' me next four quaners as follows: 6 ra m m a r Q1 Q2 Q3Q4 1 Sales 5155 Sl75 U95 3225 w Sales fox lire lsl quaner onlie year aner this one Wm mo million. Accounls receivable at are beginning onlae year were $57 million. Wildcat has a 45-day cullecticln period. Wildcal's purchases fmm suppliers in a quaner are equal to 45 pemenl of the 11m quarter's forecasled sales, and suppliers mm mm 36 days. Wages. cares, and ntbex expenses run abnut zo nercenr of sales. lnieresr and dividends are n5 million per gunner. wndcar plans a major caplral ounlay in are second gunner orssa million. Finally, Lb: cumpany snarled use year with a 575 million casli balance and wishes lo mainlain a :40 million minimum balance. 3;. Assume lbal Wildcal can borrow any needed funds on a shnnelcrm basis al a rate of 3 percenl per quaner and can invest any excess funds in shun-term markeiable securiries ai a rate of2 pemznt per quaner. Complete use following shon-lcrm financial plan for Wildcm. (Euler your answers in millions. A negarive answer Why a minus sign. Leave no cells blank a be cenain lo enler' '- wlaerever requued. Do nor round inlcnnediaic calculalions and round your answers lo gdccinaal places, erg, 32.16.) WAT, INC Shari-Term Financull Plan (in millions) 01 Beginning cash balance 40.00 3 Mel cash inllow New sho-Iierm investmens lnooino from shun-ram investments soon-lenn inveslrnenls sold New snonrenn borrowing lnreresz on snarl-term borrowing Short-(elm borrowing repaid Ending cash balance Minimum cash balance Cumulau've surplus (delicil) Beginning smnlorm inveslmonls Ending shortrlerm inveslmenls Beginning shun-lenn debt Ending shorHelrn debt aA Mini is are net casli cost (local inreresr paid minus lolal invesinaeni income earned) for use year under ibis Large! cash balance? (A neganve answer Why a minus sign. Enlex your answer ni millions. Do nor round inrermediale calculations and round your answer in gdecimal places. e.g.. 32.16.) Nei cash cosi 3 Eng '1 (U ted 5W5) Paqel of S 15 ml 1217 Ward: . 10, r 0 Type here to search Beginning snort-term debt 5 s s S Ending snortterm debt 5 s s s - - 333.. Wbal is the net cash cost (total inieresi paid minus tolal inveslmeni incnme earned) for the year under [his target cash balance? (A negalive answer Why a minus sign. Enter your answer in millions. Do nor round intermediate calculalions and RES-""9 round your answer to gdecirnal places, e.g., 32.15.) Net cash cosl s w. Cnmpleie the following shon-ierm financial plan assuming that Wildcai maintains a minimum cash balnnc: ofSZO mi Ianl (Euler your answexs in millions. A negalive answer Why a minus sign. Leave no cells blank . be eertain I0 enter " ' wlierever required. Do nol round intermediate calculaiiuns and round your answers to gdecirnal places, en, 32. l6,) wnDcM', mc. shim-Term Financial plan (in millions) 01 02 03 04 Minimum cash balance as 20.00 5 20.00 5 20.00 5 20.00 Net cash inow New snon-tonn investments Income from snarl-term investments Shim-(arm investments sold New shun-term borrowing Interest on snarl-term borrowing Shari-term borrowing repaid Ending cash balance 5 s s 5 Minimum cash balance Cumulative surplus (decit) 5 S s S Beginning short-term investments 5 s S 5 Ending snort-term invesimenls S S s S Beginning short-term debt 5 s s s Ending snomterrn debl S S S S 95;. What is tire net ensli cost (tonal inleresl paid minus total invesunenl income earned) for ma year under this rargei cash balance? (A negallve answer Why a minus sign. Enter your answer in millions. D0 noi round intermediate calculations and round ynur answer |o gdecmial places. e. g., 32.16.)Nci cash cost 3 English (United States) 0 Type here to search
