Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:Q1 Q2 Q3 Q4Sales $170 $185 $200 $225Sales for the first quarter of the following year are projected at $180 million. Accountsreceivable at the beginning of the year were $71 million. Wildcat has a 45-day collectionperiod.Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the nextquarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, andother expenses run about 25 percent of sales. Interest and dividends are $14 million perquarter.Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, thecompany started the year with a $54 million cash balance and wishes to maintain a $30million minimum balance.a. Complete the following cash budget for Wildcat, Inc. (A negative answer should beindicated by a minus sign. Do not round intermediate calculations and enter youranswers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.)Beginning cash balanceNet cash inflowEnding cash balanceMinimum cash balanceCumulative surplus (deficit)$Q1WILDCAT, INC.Cash Budget(in millions)54.00Q2Q3Q4

Quarter 1 (Q1):Beginning Cash Balance: Given as -$54.00 million.Net Cash Inflow:Sales Revenue: $170…

Answered: Wildcat's purchases from suppliers in a…

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

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Wildcat's purchases from suppliers in a quarter are equal to rter's forecast sales, and suppliers are normally paid in 36 er expenses run about 25 percent of sales. Interest and divid rter