Wildcat, Inc, has estimated sales (in millions) for the next four quarters as follows: Sales for the first quarter of the year after this one are projected at $120 million. Accounts receivable at the beginning of the year were $34 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 30 percent of sales. Interest and dividends are $6 million per quarter Wildcat plans a major capital outlay in the second quarter of $40 miln. Finally, the company started the year with a $32 million cash balance and wishes to maintain a $20 million minimum balance. 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. Prepare a short-termm financial plan by filling in the following schedule. (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 (S in millions) nvestmants sol Short-lem borrowing repaid Endng cash balance Cumulative surplus deic Beginning short-erm debt Ending shon-term d What is the net cash cost for the year under this target cash balance? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Wildcat, Inc, has estimated sales (in millions) for the next four quarters as follows: Sales for the first quarter of the year after this one are projected at $120 million. Accounts receivable at the beginning of the year were $34 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 30 percent of sales. Interest and dividends are $6 million per quarter Wildcat plans a major capital outlay in the second quarter of $40 miln. Finally, the company started the year with a $32 million cash balance and wishes to maintain a $20 million minimum balance. 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. Prepare a short-termm financial plan by filling in the following schedule. (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 (S in millions) nvestmants sol Short-lem borrowing repaid Endng cash balance Cumulative surplus deic Beginning short-erm debt Ending shon-term d What is the net cash cost for the year under this target cash balance? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
