Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:
WildcaL Inc.. has estimated sales {in millions] for the next four quarters as follows: 91 D2 113 D4 Sales$1 $2DD $220 $25G [ 5a|es for the rst quarter of the year after this one are projected at $195 million. Accounts receivable at the beginning of the year were $?? million. Wildcat has a 45day collection period. Wildcat's purchases from suppliers in a quarter are equal to 51:! percent of the next quarter's forecast sales, and suppliers are normally paid in 35 days. Wages. tar-res+ and other expenses run about 25 percent of sales. Interest and dividends are 1151K]I million per guanec Wildcat plans a major capital outlay in the second quarter of $35 million. Finally+ the company started the year with a $31 million cash balance and wishes to maintain a $4D 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 shortterm marketable securities at a rate of 2 percent per quarter. Complete the following shortterm nancial plan for Wildcat. [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.I 32:15. Leave no cells blank - be certain to enter \"ID\" wherever required} WILDCAT, INC. Short-Term Financial Plan (in millions) Q1 Q2 Q3 Q4 it cash balance $ 40.00 $ 40.00 $ 40.00 $ 40.00 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 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 answers in millions rounded to 2 decimal places, e.g., 32.16. Leave no cells blank be certain to enter "O" wherever required.) Net cash costb-1. Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $20 million. (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., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) 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 Interest 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 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 answers in millions rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) Net cash cost
