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Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Sales Q2 Q1 $ 165 $185 Q3 $ 205 Sales for the first quarter of the year after this one are projected at $180 million Accounts receivable at the beginning of the year were $71 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 $16 million per quarter. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a $78 million cash balance and wishes to maintain a $30 million minimum balance. Target cash balance Net cash inflow Q4 $235 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 rounded to 2 decimal places, e.g.. 32.16. Leave no cells blank- be certain to enter "0" wherever required.) Ending cash balance Minimum cash balance Cumulative surplus (deficit) $ WILDCAT, INCORPORATED Cash Budget (in millions) Q1 78.00 -30.00 Q2 -30.00 Q3 30.00 04 -30.00

Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Sales Q2 Q1 $ 165 $185 Q3 $ 205 Sales for the first quarter of the year after this one are projected at $180 million Accounts receivable at the beginning of the year were $71 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 $16 million per quarter. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a $78 million cash balance and wishes to maintain a $30 million minimum balance. Target cash balance Net cash inflow Q4 $235 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 rounded to 2 decimal places, e.g.. 32.16. Leave no cells blank- be certain to enter "0" wherever required.) Ending cash balance Minimum cash balance Cumulative surplus (deficit) $ WILDCAT, INCORPORATED Cash Budget (in millions) Q1 78.00 -30.00 Q2 -30.00 Q3 30.00 04 -30.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ok Problem 26-13 Calculating the Cash Budget Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Sales Q1 Q2 Q3 $165 $185 $ 205 Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 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 $16 million per quarter. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a $78 million cash balance and wishes to maintain a $30 million minimum balance. Q4 $235 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 rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) Target cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) $ WILDCAT, INCORPORATED Cash Budget (in millions) Q1 78.00 -30.00 Q2 -30.00 Q3 30.00 04 -30.00 Prev 4 of 5 HH Next >
Transcribed Image Text:ok Problem 26-13 Calculating the Cash Budget Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Sales Q1 Q2 Q3 $165 $185 $ 205 Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 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 $16 million per quarter. Wildcat plans a major capital outlay in the second quarter of $99 million. Finally, the company started the year with a $78 million cash balance and wishes to maintain a $30 million minimum balance. Q4 $235 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 rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) Target cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) $ WILDCAT, INCORPORATED Cash Budget (in millions) Q1 78.00 -30.00 Q2 -30.00 Q3 30.00 04 -30.00 Prev 4 of 5 HH Next >
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 rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) 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 WILDCAT, INCORPORATED Short-Term Financial Plan (in millions) 30.00 $ -30 Q2 30.00 -30 $ 03 30.00 $ -30 04 30.00 -30
Transcribed Image Text: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 rounded to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) 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 WILDCAT, INCORPORATED Short-Term Financial Plan (in millions) 30.00 $ -30 Q2 30.00 -30 $ 03 30.00 $ -30 04 30.00 -30
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