Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $165 $185 $205 $235 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 forecasted 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 $40 million minimum balance. a-1. 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. Complete the following short-term financial plan for Wildcat. (Leave no cells blank - be certain to enter "O" wherever required. 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.) Minimum 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 WILDCAT, INC. Short-Term Financial Plan (in millions) Q1 Q2 Q3 $ 40.00 $ 40.00 $ 40.00 $ Q4 40.00 이 이 0 0 이 0 0 0 0 이 이 0 이 0 Minimum cash balance Cumulative surplus (deficit) $ 이 $ 0 $ 0 S 이 Beginning short-term investments S 이 Ending short-term investments $ 이 Beginning short-term debt S 0 $ 0 $ Ending short-term debt $ 0 S 0 $
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $165 $185 $205 $235 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 forecasted 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 $40 million minimum balance. a-1. 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. Complete the following short-term financial plan for Wildcat. (Leave no cells blank - be certain to enter "O" wherever required. 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.) Minimum 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 WILDCAT, INC. Short-Term Financial Plan (in millions) Q1 Q2 Q3 $ 40.00 $ 40.00 $ 40.00 $ Q4 40.00 이 이 0 0 이 0 0 0 0 이 이 0 이 0 Minimum cash balance Cumulative surplus (deficit) $ 이 $ 0 $ 0 S 이 Beginning short-term investments S 이 Ending short-term investments $ 이 Beginning short-term debt S 0 $ 0 $ Ending short-term debt $ 0 S 0 $
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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Transcribed Image Text:Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:
Q1
Q2
Q3
Q4
Sales $165 $185 $205 $235
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 forecasted 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 $40
million minimum balance.
a-1. 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. Complete the following short-term
financial plan for Wildcat. (Leave no cells blank - be certain to enter "O" wherever
required. 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.)
Minimum 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
WILDCAT, INC.
Short-Term Financial Plan
(in millions)
Q1
Q2
Q3
Q4
$
40.00
$
40.00
$
40.00
$
40.00
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Cumulative surplus (deficit)
$
0
$
0
$
0
$
0
Beginning short-term investments
$
0
Ending short-term investments
$
0
Beginning short-term debt
Ending short-term debt
$
0
$
0
$
0
$
0
$
0
$
0
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