Question

Wildcat, Inc., has estimated sales in millions) for the next four quarters as follows: Sales Q1 $125 Q2 $145 Q3 $165 Q4 $195 Sales for the first quarter of the year after this one are projected at $140 million. Accounts receivable at the beginning of the year were $55 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 $10 million per quarter. Wildcat plans a major capital outlay in the second quarter of $81 million. Finally, the company started the year with a $70 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. (Enter your answers in millions. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) WILDCAT, INC. Short-Term Financial Plan (in millions) Q2 $ 40.00 $ 40.00 Q1 Q3 $ 40.00 $40.00 Target cash balance Net cash inflow New short-term investments Income on 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 9 999 GAGA

Answer 1

Allocation of Cost of service departments using Direct method.
	TO
From	Administration	Accounting	Domestic	International
Department costs	$     3,56,000.00	$                       1,49,000.00	$   9,50,000.00	$ 35,90,000.00
Administration allocation	$   (3,56,000.00)	$                                        -	$   2,15,605.63	$    1,40,394.37
Accounting allocation		$                     (1,49,000.00)	$      29,800.00	$     1,19,200.00
Totals	$                       -	$                                        -	$ 11,95,405.63	$ 38,49,594.37
Workings :
Administration Allocation :
Domestic : 356000 *43/ (43+28)	$      2,15,605.63
International : 356000 *28/ (43+28)	$      1,40,394.37
Accounting Allocation :
Domestic : 149000*19000/(19000+76000)	29800
International :149000*76000/(19000+76000)	119200
			(Please Round off as per system Requirement)
Allocation of Cost of service departments using Step method.