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 year after this one are projected at $150 million. Accounts receivable at the beginning of the year were $59 mllion. Wildcat has a 45 day collection period.

Wildcat's purchases from suppliers in a quarter are equal to 40 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expense run about 20 percent of sales. Interest and dividends are $15 million per quarter.

Wildcat plans a major captial outlay in the second quarter of $94 million. Finally, the company started the year with a $72 million cash balance and wishes to maintain a $40 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 short-term marketable securities at a rate of 2 percent per quarter. Complete the following short-term marketable securities at a rate of 2 percent per quarter. Complete the following short-term financial plan for Wildcat. (Enter your answers in millions. A negative answer 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 answers to 2 decimal places, e.g.,32.16)

Wildcat, Inc. Short-Term Financial Plan ( in millions)

Q1 Q2 Q3 Q4

Target cash balance $40 $40 $40 $40

Net cash inflow ___ ____ ____ ____

New short-term investments ___ ___ _____ ____

Income on 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) ___ ____ ______ ______

Begining short-term investements ___ ______ _____ _____

Ending short-term investments ___ ____ ____ ______

Begining short-term debt ____ _____ _____ ___

Ending short-term debt ____ ______ ____ ______

a.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. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16)

Net cash cost $_______

b-1. Complete the following short-term financial plan assuming that Wildcat maintains a minimus cash balance of (Enter your answers in millions. A negative answer should be indicated by a minus sign. Leave no cells blank- enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal place 32.16,)

Wildcat, Inc. Short-Term Financial Plan (in millions)

Q1 Q2 Q3 Q4

Target cash balance $20 $20 $20 $20

Net cash inflow ____ ____ _____ ______

New short-term investments _____ _____ ____ _____

Income on short-term investments ____ _____ ______ _______

Short-term investment 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? (Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.)

Net cash cost $_______