Wildcat Inc has estimates sales (in millions) for the next four months as follows: January: $230...

Wildcat Inc has estimates sales (in millions) for the next four months as follows:

January: $230

February: $195

March: $270

April: $290

Gross sales in November were $250, in December were $200, and May are projected at $250 million. Wildcat has a 60-day collection period. Wildcat’s purchases from suppliers in a month are equal to 55 percent of the next month’s forecasted sales, and suppliers are normally paid in 30 days. Wages, taxes, and other expenses run about 30 percent of sales. Dividends of $15 million will be paid in March. Wildcat plans a major capital outlay in February of $90 million. Finally, the company started the year with a $73 million cash balance and wishes to maintain a $35 million minimum balance. Complete a cash budget for Wildcat for January through April.

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ekkarill92 answered 1 year ago

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