Question Completion Status: Question 1 75 points Save Answer Firm CVs has estimated sales (in millions) for the next four quarters as follows: Sales (in millions) Q1 $ 70 Q2 $ 100 Q3 $ 120 Q4 $ $ 130 Sales for the first quarter of the year after this one are projected at $110 million. Accounts receivable at the beginning of the year were $23 million. CVS has a 20-day collection period. CVS's purchases from suppliers in a quarter are equal to 30 percent of the next quarter's forecast sales, and suppliers are normally paid in 20 days. Wages, taxes, and other expenses run about 10 percent of sales. Interest and dividends are $7 million per quarter. CVS plans a major capital outlay in the second quarter of $50 million. Finally, the company started the year with a $35 million cash balance and wishes to maintain a $25 million minimum balance. Short term borrowing rate is 5%, short term lending rate is 3%. a-Prepare cash collection table [ 15 Points] b- Prepare cash disbursement table [ 15 Points] c-Prepare cash budget table [ 20 Points] d-Prepare short-term financial plan. [ 20 Points] e- What is the amount of cash generated by short-term financing? [ 5 Points] : For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B TUS Paragraph Arial 14px = A A T % OG Q6 MacBook Pro Question Completion Status: Question 1 75 points Save Answer Firm CVs has estimated sales (in millions) for the next four quarters as follows: Sales (in millions) Q1 $ 70 Q2 $ 100 Q3 $ 120 Q4 $ $ 130 Sales for the first quarter of the year after this one are projected at $110 million. Accounts receivable at the beginning of the year were $23 million. CVS has a 20-day collection period. CVS's purchases from suppliers in a quarter are equal to 30 percent of the next quarter's forecast sales, and suppliers are normally paid in 20 days. Wages, taxes, and other expenses run about 10 percent of sales. Interest and dividends are $7 million per quarter. CVS plans a major capital outlay in the second quarter of $50 million. Finally, the company started the year with a $35 million cash balance and wishes to maintain a $25 million minimum balance. Short term borrowing rate is 5%, short term lending rate is 3%. a-Prepare cash collection table [ 15 Points] b- Prepare cash disbursement table [ 15 Points] c-Prepare cash budget table [ 20 Points] d-Prepare short-term financial plan. [ 20 Points] e- What is the amount of cash generated by short-term financing? [ 5 Points] : For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B TUS Paragraph Arial 14px = A A T % OG Q6 MacBook Pro