Answer:
Wildcat, Inc.
WILDCAT, INC. Cash Budget (in millions)
                                                   Q1           Q2          Q3          Q4
Beginning cash balance         $78.00    $115.90   $48.45   $83.40
Net cash inflow                         37.90      -67.45     34.95      71.05
Ending cash balance             $115.90    $48.45    $83.40 $154.45
Minimum cash balance          -40.00     -40.00     -40.00   -40.00
Cumulative surplus (deficit)  $75.90      $8.45    $43.40  $114.45
Explanation:
a) Data and Calculations:
                                  Q1      Q2      Q3      Q4     Q1
Sales (in millions) $165   $185  $205  $235   $180
Accounts receivable at beginning of the year = $71 million
Collection period = 45 days = 50% in each quarter and 50% in the next
Purchases for the quarter = 45% of next quarter's forecast sales
Payment period = 36 days
Wages, taxes, etc. = 20% of sales
                                       Q1          Q2        Q3        Q4         Q1
Sales (in millions)        $165       $185    $205       $235     $180
Cash collections:
50% quarter of sales             82.50    92.50    102.50     117.50
50% next quarter                   71.00     82.50    92.50    102.50
Total cash collections          153.50    175.00   195.00   220.00
Purchases                              83.25     92.25  105.75   81.00
Cash Payments:
80% month of purchase      66.60     73.80   84.60   64.80
20% following purchase                     16.65    18.45     21.15
Total purchases payments 66.60     90.45  103.05  85.95
Wages, taxe, etc.                 33           37          41        47
Interest and dividends        16            16          16        16
Capital outlay                                     99
Total cash disbursements 115.60   242.45   160.05  148.95
Net cash inflow                   37.90   -67.45      34.95    71.05
Cash, beginning = $78 million
Desired minimum balance = $40 million