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

Q1 Q2 Q3 Q4

SALES 160 180 200 230

Sales for the first quarter of the year after this one are projected at $175 million. Accounts receiable at the beginning of the year were $69 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 25 percent of sales. Interest and dividends are $12 million per quarter.

Wildcat plans a major capital outlay in the second quarter of $88 million. Finally, the company started the year with a cash balance of $77 million and wishes to maintain a $30 million minimum balance.

a. Complete the following cash budget for Wildcat, Inc. (Enter your answers in millions, e.g., 1.23. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.)

Wildcat, Inc. Cash Budget (in Millions)

Q1 Q2 Q3 Q4

Beginning cash balance $77 ______ ________ _______

Net cash inflow _____ _______ _________ ________

Ending cash balance ______ ________ ________ ________

Minimum cash balance -30 -30 -30 -30

Cumulative surplus (deficit) ______ ________ _______ ________

b-1. Complete the following short-term financial plan for Wildcat, Inc, ( Enter your answers in millions, e.g., 1.23. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank-be certain to enter "0" wherever required.)

WildCat, INC. Short-Term Financial Plan (in millions)

Q1 Q2 Q3 Q4

Target cash balance $30 $30 $30 $30

Net cash inflow _____ _____ ______ _____

New short-term investment _______ ______ _______ _____

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 __________ ______ ___________ _______

b-2. What is the net cash cost (total interest paid minus total investment income earned) for the year? (Enter your answers in millions, e.g. 1.23. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16)

Net cash cost $_________