Target cash balance 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 Short-Term Financial Plan $ (in millions) Q1 30.00 $ Q2 22 30.00 $ 8 Q3 30.00 $ Q4 30.00 -30.00 30.00 -30.00 -30.00 b-1. Complete the following short-term financial plan for Wildcat, Incorporated. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calcu millions, not dollars, rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain Target cash balance 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 WILDCAT, INCORPORATED Short Term Financial Plan (in millions) Q1 Q2 Q3 04 $ 30 00 S 30.00 $ 30.00 $ 30.00
Target cash balance 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 Short-Term Financial Plan $ (in millions) Q1 30.00 $ Q2 22 30.00 $ 8 Q3 30.00 $ Q4 30.00 -30.00 30.00 -30.00 -30.00 b-1. Complete the following short-term financial plan for Wildcat, Incorporated. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calcu millions, not dollars, rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain Target cash balance 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 WILDCAT, INCORPORATED Short Term Financial Plan (in millions) Q1 Q2 Q3 04 $ 30 00 S 30.00 $ 30.00 $ 30.00
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Sales | $ 105 | $ 125 | $ 145 | $ 175 |
Sales for the first quarter of the following year are projected at $120 million. Accounts receivable at the beginning of the year were $47 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
Wildcat plans a major capital outlay in the second quarter of $60 million. Finally, the company started the year with a cash balance of $66 million and wishes to maintain a $30 million minimum balance.
-
a. Complete the following cash budget for Wildcat, Incorporated.
Note: 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.
Transcribed Image Text:Target cash balance
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
Short-Term Financial Plan
$
(in millions)
Q1
30.00 $
Q2
22
30.00 $
8
Q3
30.00 $
Q4
30.00
-30.00
30.00
-30.00
-30.00
Transcribed Image Text:b-1. Complete the following short-term financial plan for Wildcat, Incorporated.
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calcu
millions, not dollars, rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain
Target cash balance
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
WILDCAT, INCORPORATED
Short Term Financial Plan
(in millions)
Q1
Q2
Q3
04
$
30 00 S
30.00
$
30.00 $
30.00
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