Question

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $200 $220 $240 $270

a. Complete the following cash budget for Wildcat, Inc. (A negative answer should be indicated by a minus sign. Do not round

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 e

b-2. What is the net cash cost (total interest paid minus total investment income earned) for the year? (A negative answer sh

Can you please show calculations.

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Answer #1


Solution 45-day collection period means sales collections = 1/2 current sales + 1/2 old sales 36-day payables period means paAB E F G Question 215 0.25 Sales (1st quarter of next year) AR Collection period % of purchases for next Q sales Suppliers paCash Balance 01 Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit)AB Q1:1=IF(D9>D10,excess funds at start of quarter of,shortage of funds at start of quarter of) Q2: IF(D49>0,excess funds

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