Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Sales for the first quarter of the following year are projected at $150 million. Accounts receivable at the beginning of the year were $59 million. 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 expenses run about 20 percent of sales. Interest and dividends are $15 million per quarter. Wildcat plans a major capital outlay in the second quarter of $94 million. Finally, the company started the year with a cash balance of $72 million and wishes to maintain a $30 million minimum balance.

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Q1 Q2 Q3 Q4 Sales $135 $155 $175 $ 205 Sales for the first quarter of the following year are projected at $150 million. Accounts receivable at the beginning of the year were $59 million. 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 expenses run about 20 percent of sales. Interest and dividends are $15 million per quarter. Wildcat plans a major capital outlay in the second quarter of $94 million. Finally, the company started the year with a cash balance of $72 million and wishes to maintain a $30 million minimum balance. a. Complete the following cash budget for Wildcat, Incorporated. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.) WILDCAT, INCORPORATED Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance $ 72.00 $ 97.70 Net cash inflow 25.70 Ending cash balance $ 97.70 Minimum cash balance Cumulative surplus (deficit) $ -30.00 67.70 -30.00 -30.00 -30.00 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. b-1. Complete the following short-term financial plan for Wildcat, Incorporated. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) Target cash balance Net cash inflow New short-term investments WILDCAT, INCORPORATED Short-Term Financial Plan (in millions) Q1 Q2 Q3 Q4 $ 30.00 $ 30.00 $ 30.00 $ 30.00 Income from short-term investments 0.84 Short-term investments sold 0.00 0.00 0.00 New short-term borrowing 0.00 0.00 0.00 0.00 Interest on short-term borrowing 0.00 0.00 0.00 0.00 Short-term borrowing repaid 0.00 0.00 0.00 0.00 Ending cash balance Minimum cash balance -30.00 -30.00 -30.00 -30.00 Cumulative surplus (deficit) Beginning short-term investments $ 42.00 Ending short-term investments Beginning short-term debt $ 0.00 $ Ending short-term debt $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 Q1 Q2 Q3 Q4 Sales $135 $155 $175 $ 205 Sales for the first quarter of the following year are projected at $150 million. Accounts receivable at the beginning of the year were $59 million. 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 expenses run about 20 percent of sales. Interest and dividends are $15 million per quarter. Wildcat plans a major capital outlay in the second quarter of $94 million. Finally, the company started the year with a cash balance of $72 million and wishes to maintain a $30 million minimum balance. a. Complete the following cash budget for Wildcat, Incorporated. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.) WILDCAT, INCORPORATED Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance $ 72.00 $ 97.70 Net cash inflow 25.70 Ending cash balance $ 97.70 Minimum cash balance Cumulative surplus (deficit) $ -30.00 67.70 -30.00 -30.00 -30.00 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. b-1. Complete the following short-term financial plan for Wildcat, Incorporated. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) Target cash balance Net cash inflow New short-term investments WILDCAT, INCORPORATED Short-Term Financial Plan (in millions) Q1 Q2 Q3 Q4 $ 30.00 $ 30.00 $ 30.00 $ 30.00 Income from short-term investments 0.84 Short-term investments sold 0.00 0.00 0.00 New short-term borrowing 0.00 0.00 0.00 0.00 Interest on short-term borrowing 0.00 0.00 0.00 0.00 Short-term borrowing repaid 0.00 0.00 0.00 0.00 Ending cash balance Minimum cash balance -30.00 -30.00 -30.00 -30.00 Cumulative surplus (deficit) Beginning short-term investments $ 42.00 Ending short-term investments Beginning short-term debt $ 0.00 $ Ending short-term debt $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00