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

	Q1			Q2			Q3			Q4
Sales	$	135		$	155		$	175		$	205

Sales for the first quarter of the following year are projected at $150 million. Accounts receivable at the beginning of the year were $59 million. Wildcat has a 45-day collection period.

Wildcats purchases from suppliers in a quarter are equal to 40 percent of the next quarters 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 $15 million per quarter.

Wildcat plans a major capital outlay in the second quarter of $94 million. Finally, the company started the year with a cash balance of $72 million and wishes to maintain a $30 million minimum balance.

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, not dollars, rounded to 2 decimal places, e.g., 32.16.)

WILDCAT, INC.
Cash Budget
(in millions)
	Q1	Q2	Q3	Q4
Beginning cash balance	$72.00
Net cash inflow
Ending cash balance
Minimum cash balance	-30.00	-30.00	-30.00	-30.00
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. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)

Answer is not complete.

WILDCAT, INC.
Short-Term Financial Plan
(in millions)
	Q1	Q2	Q3	Q4
Target cash balance	$30.00	$30.00	$30.00	$30.00
Net cash inflow	35.74selected answer incorrect	-49.45selected answer incorrect	49.97selected answer incorrect	87.57selected answer incorrect
New short-term investments	42.00selected answer incorrect	77.74selected answer incorrect	28.29selected answer incorrect	78.26selected answer incorrect
Income from short-term investments	0.84selected answer correct	1.55selected answer incorrect	0.57selected answer incorrect	1.57selected answer incorrect
Short-term investments sold	not attempted	49.45selected answer incorrect	not attempted	not attempted
New short-term borrowing	not attempted	not attempted	not attempted	not attempted
Interest on short-term borrowing	not attempted	not attempted	not attempted	not attempted
Short-term borrowing repaid	not attempted	not attempted	not attempted	not attempted
Ending cash balance	$107.74selected answer incorrect	$58.29selected answer incorrect	$108.26selected answer incorrect	$195.83selected answer incorrect
Minimum cash balance	-30.00	-30.00	-30.00	-30.00
Cumulative surplus (deficit)	$77.74selected answer incorrect	$28.29selected answer incorrect	$78.26selected answer incorrect	$165.83selected answer incorrect
Beginning short-term investments	$42.00selected answer correct	$77.74selected answer incorrect	$28.29selected answer incorrect	$78.26selected answer incorrect
Ending short-term investments	$77.74selected answer incorrect	$28.29selected answer incorrect	$78.26selected answer incorrect	$165.83selected answer incorrect
Beginning short-term debt	not attempted	not attempted	not attempted	not attempted
Ending short-term debt	not attempted	not attempted	not attempted	not attempted

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 answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.)