Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Sales $ 170 $ 190 $210 Q4 $ 240 Sales for the first quarter of the following year are projected at $185 million. Accounts receivable at the beginning of the year were $73 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 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 $18 million per quarter. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a cash balance of $79 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. WILDCAT, INCORPORATED Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance $ 79.00 Net cash inflow Ending cash balance Minimum cash balance -30.00 -30.00 -30.00 -30.00 Cumulative surplus (deficit)
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Sales $ 170 $ 190 $210 Q4 $ 240 Sales for the first quarter of the following year are projected at $185 million. Accounts receivable at the beginning of the year were $73 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 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 $18 million per quarter. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a cash balance of $79 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. WILDCAT, INCORPORATED Cash Budget (in millions) Q1 Q2 Q3 Q4 Beginning cash balance $ 79.00 Net cash inflow Ending cash balance Minimum cash balance -30.00 -30.00 -30.00 -30.00 Cumulative surplus (deficit)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...
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I just need the table filled
Transcribed Image Text:Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows:
Q1
Q2
Q3
Sales $ 170 $ 190 $210
Q4
$ 240
Sales for the first quarter of the following year are projected at $185 million. Accounts receivable at the beginning of the year were $73
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 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 $18 million per quarter.
Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a cash balance of
$79 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.
WILDCAT, INCORPORATED
Cash Budget
(in millions)
Q1
Q2
Q3
Q4
Beginning cash balance
$
79.00
Net cash inflow
Ending cash balance
Minimum cash balance
-30.00
-30.00
-30.00
-30.00
Cumulative surplus (deficit)
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