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 year after this one 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 forecasted 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. 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. A negative answer 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) Q1 Q2 Q3 Q4 Beginning cash balance $ 40.00 $ 40.00 $ 40.00 $ 40.00 Net cash inflow 16 New short-term investments 17 Income from short-term investments 1 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 $ $ $ $ a-2. What is the net cash cost (total interest paid minus total investment income earned) for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net cash cost $ b-1. Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $20 million. (Enter your answers in millions. A negative answer 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) Q1 Q2 Q3 Q4 Minimum cash balance $ 20.00 $ 20.00 $ 20.00 $ 20.00 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 Cumulative surplus (deficit) $ $ $ $ Beginning short-term investments $ $ $ $ Ending short-term investments $ $ $ $ Beginning short-term debt $ $ $ $ Ending short-term debt $ $ $ $ b-2. What is the net cash cost (total interest paid minus total investment income earned) for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net cash cost $

1. How are the Keynesian and neoclassical perspectives on the economy different, and how is it possible for one economist to accept both of these perspectives?

2. Explain why there is an expenditure multiplier and why it is expected to be different for government spending and taxation.

A government annually collects $520 billion in tax revenue and allocates $64 billion to education spending. What percentage of this government's budget is spent on education?

A. 24.50%

B. 12.31%

C. 13.21%

D. 30.13%

Assuming the exchange rate is the foreign currency price of dollars (x), use an appropriate diagram and describe the effect of a domestic increase in G (i.e., our government increases its spending) on the value of the foreign currency.

State and Local Governments and Aggregate Demand. The aggregate demand curve shifts to the right if

A.

the money supply decreases

B.

the price level increases

C.

taxes increase

D.

state governments increase their spending

Consumer spending is linked to disposable income. In 2011 and 2012, President Obama lowered the payroll taxes paid by workers from 6.2% to 4.2%. Explain how this change in taxes affected consumption and aggregate demand.

What is the Trump plan for fiscal policy? Incorporate a definition of fiscal policy for both recession and inflation, and explain how having Congress and the Presidency from the same party will influence taxing, spending, and the budget deficit.