Wild cat Inc

Q1 Q2
Sales (in millions) $ 105 $ 90

Sales (1st quarter of next year) $ 120

A/R $ 34
Collection period 45
% of purchases for next Q sales 45%
Suppliers paid 36
% of sales for expenses 30%
Interest and dividends $ 6
Outlay in second Q $ 40
Beginning cash balance $ 32
Minimum balance (in millions) $ 15

Output Area:

45-day collection period means sales collectiond = 1/2 current sales + 1/2 old sales
36-day payables period means payables = 3/5 current orders + 2/5 old orders
Beginning receivables $ 34.00 $ 52.50
Sales 105.00 90.00
Collection of accounts 86.50 97.50
Ending receivables $ 52.50 $ 45.00

Payment of accounts $ 43.20 $ 49.14

Wages, taxes, and other expenses 31.50 27.00
Capital expenditures 40.00
Interest & dividends 6.00 6.00
Total cash disbursements $ 80.70 $ 122.14

Total cash collections $ 86.50 $ 97.50

Total cash disbursements 80.70 122.14
Net cash inflow $ 5.80 $ (24.64)

Cash Balance
Q1 Q2
Beginning cash balance $ 32.00 $ 37.80
Net cash inflow 5.80 (24.64)
Ending cash balance $ 37.80 $ 13.16
Minimum cash balance (15.00) (15.00)
Cumulative surplus (deficit) $ 22.80 $ (1.84)
 Q3 Q4
$ 122 $ 140

1/2 old sales

$ 45.00 $ 61.00
122.00 140.00
106.00 131.00
$ 61.00 $ 70.00

$ 59.76 $ 57.60
36.60 42.00

6.00 6.00
$ 102.36 $ 105.60

$ 106.00 $ 131.00
102.36 105.60
$ 3.64 $ 25.40

Q3 Q4
$ 13.16 $ 16.80
3.64 25.40
$ 16.80 $ 42.20
(15.00) (15.00)
$ 1.80 $ 27.20