Item$1020$points ItemSkipped eBookReferences Item$10$ Cottonwood Inc. had sales of $$136$ in Q$4$ of last year and has estimated sales $($in millions$)$ for the next four quarters as follows: $$Q$1$Q$2$Q$3$Q$4$Sales$$160$$$175$$$190$$$215$ Sales for the first quarter of the year after this one are projected at $$170$ million. Accounts receivable at the beginning of the year were $$68$ million. Cottonwood has a $45-$day collection period. $$ Cottonwood$$s purchases from suppliers in a quarter are equal to $45\%$ of the next quarter$$s forecast sales, and suppliers are normally paid in $36$ days. Wages, taxes, and other expenses run about $25\%$ of sales. Interest and dividends are $$12$ million per quarter. $$ Cottonwood plans a major capital outlay in the second quarter of $$75$ million. Finally, the company started the year with a $$49$ million cash balance and wishes to maintain a $$30$ million minimum balance. $$ a$.$Complete the following cash budget for Cottonwood.$($Negative answers should be indicated by a minus sign. Enter the answers in millions. Do not round intermediate calculations. Round the final answers to $2$ decimal places. Omit $"$$$"$ sign in your response.$)$ COTTONWOOD INC. Cash Budget $($in $ millions$)$Q$1$Q$2$Q$3$Q$4$Beginning cash balance$$$$49\mathrm{.}00$$$$$$$$$$Net cash inflow$$Ending cash balance$$$$$$$$$$$$$$Minimum cash balance$30\mathrm{.}0030\mathrm{.}0030\mathrm{.}0030\mathrm{.}00$Cumulative surplus $($deficit$)$$$$$$$$$$$$$ Assume that Cottonwood can borrow any needed funds on a short$-$term basis at a rate of $3\%$ per quarter and can invest any excess funds in short$-$term marketable securities at a rate of $2\%$ per quarter. $$ b$-1.$Complete the following short$-$term financial plan for Cottonwood Inc.$($Enter the answers in millions. Negative answers should be indicated by a minus sign. Do not leave any empty spaces; input a $0$ wherever it is required. Do not round intermediate calculations. Round the final answers to $2$ decimal places. Omit $"$$$"$ sign in your response.$)$ COTTONWOOD INC. Short$-$Term Financial Plan $($in $ millions$)$Q$1$Q$2$Q$3$Q$4$Beginning cash balance$$$$30\mathrm{.}00$$$30\mathrm{.}00$$$30\mathrm{.}00$$$30\mathrm{.}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$)$$$$$$$$$$$$$Beginning short$-$term investments$$$$$$$$$$$$$$Ending short$-$term investments$$$$$$$$$$$$$$Beginning short$-$term debt$$$$$$$$$$$$$$Ending short$-$term debt$$$$$$$$$$$$$$ b$-2.$What is the net cash cost $($total interest paid minus total investment income earned$)$ for the year?$($Do not round intermediate calculations. Enter the answers in millions. Round the final answers to $3$ decimal places.$)$ Net cash cost$$$$--$ please do not use excel if possible can you show mw how to do the calculations, thank you so much! :) Cottonwood Inc. had sales of $\backslash (\backslash$$ $136\backslash )$ in Q$4$ of last year and has estimated sales $($in millions$)$ for the next four quarters as follows:

$\backslash$begin$\{$tabular$\}\{$ccccc$\}$

& Q$1$ & Q$2$ & Q$3$ & Q$4\backslash \backslash$

Sales & $\backslash (\backslash$$ $160\backslash )$ & $\backslash (\backslash$$ $175\backslash )$ & $\backslash (\backslash$$ $190\backslash )$ & $\backslash (\backslash$$ $215\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Sales for the first quarter of the year after this one are projected at $\backslash (\backslash$$ $170\backslash )$ million. Accounts receivable at the beginning of the year were $\backslash (\backslash$$ $68\backslash )$ million. Cottonwood has a $45-$day collection period.

Cottonwood's purchases from suppliers in a quarter are equal to $\backslash (45\backslash \%\backslash )$ of the next quarter's forecast sales, and suppliers are normally paid in $36$ days. Wages, taxes, and other expenses run about $\backslash (25\backslash \%\backslash )$ of sales. Interest and dividends are $\backslash (\backslash$$ $12\backslash )$ million per quarter.

Cottonwood plans a major capital outlay in the second quarter of $\backslash (\backslash$$ $75\backslash )$ million. Finally, the company started the year with a $\backslash (\backslash$$ $49\backslash )$ million cash balance and wishes to maintain a $\backslash (\backslash$$ $30\backslash )$ million minimum balance.

a$.$ Complete the following cash budget for Cottonwood. $($Negative answers should be indicated by a minus sign. Enter the answers in millions. Do not round intermediate calculations. Round the final answers to $2$ decimal places. Omit $"\backslash$$$"$ sign in your response.$)$

Assume that Cottonwood can borrow any needed funds on a short$-$term basis at a rate of $\backslash (3\backslash \%\backslash )$ per quarter and can invest any excess funds in short$-$term marketable securities at a rate of $\backslash (2\backslash \%\backslash )$ per quarter.