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…

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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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 180 $ 200 $ 220 $ 250 Sales for the first quarter of the following year are projected at $195 million. Accounts receivable at the beginning of the year were $77 million. Wildcat has a 45-day collection period. Wildcat’s purchases from suppliers in a quarter are equal to 50 percent of the next quarter’s forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $10 million per quarter. Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $81 million cash balance and wishes to maintain a $40 million minimum balance. b-1. Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $20 million.…
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $115 $135 $155 $185 Sales for the first quarter of the following year are projected at $130 million. Accounts receivable at the beginning of the year were $51 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 $11 million per quarter. Wildcat plans a major capital outlay in the second quarter of $70 million. Finally, the company started the year with a cash balance of $68 million and wishes to maintain a $30 million minimum balance. 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, not…
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $170 $185 $200 $225 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 25 percent of sales. Interest and dividends are $14 million per quarter. Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $30 million minimum balance. 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…
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 140 $ 160 $ 180 $ 210 Sales for the first quarter of the following year are projected at $155 million. Accounts receivable at the beginning of the year were $61 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 25 percent of sales. Interest and dividends are $10 million per quarter. Wildcat plans a major capital outlay in the second quarter of $76 million. Finally, the company started the year with a $73 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…
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 110 $ 130 $ 150 $ 180 Sales for the first quarter of the following year are projected at $125 million. Accounts receivable at the beginning of the year were $49 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 40 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 $11 million per quarter. Wildcat plans a major capital outlay in the second quarter of $78 million. Finally, the company started the year with a cash balance of $67 million and wishes to maintain a $30 million minimum balance. 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, not…
Dora Distribution has projected the following quarterly sales. The accounts receivable at the beginning of the year is $970 and the collection period is 60 days. What are collections for the first quarter? Q1 Q2 Q3 Q4 Sales $ 1,585 $ 1,705 $ 1,995 $ 2,075
NuParts, Inc., has estimated quarterly sales for next year, starting with Quarter 1, of $15,900, $16,800, $17,500, and $16,400. Purchases are equal to 67 percent of the following quarter's sales and the accounts payable period is 60 days. Assume 30 days in each month. How much will the firm owe its suppliers at the end of Quarter 3? $7,066.67 $7,506.67 $7,816.67 $6,933.33 $7,325.33
Wigmore, Incorporated, has estimated sales of $20,200, $21,825, $20,170, and $21,900 for each quarter next year, respectively. The accounts receivable period is 75 days. What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days. Multiple Choice $3,637.50 $16,833.33 $18.187.50 $16.808.33 $3,361.67

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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