Question

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below.

	Quarter in Coming Year					Following Year
	First	Second	Third	Fourth		First Quarter
Sales forecast	$396	$333	$343	$391		$391

Paymore’s labor and administrative expenses are $72 per quarter and interest on long-term debt is $47 per quarter. Suppose that Paymore’s cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $343. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Work out the short-term financing requirements for the firm in the coming year using the above table. The firm pays no dividends. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign.)

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below.

	Quarter in Coming Year					Following Year
	First	Second	Third	Fourth		First Quarter
Sales forecast	$396	$333	$343	$391		$391

Paymore’s labor and administrative expenses are $72 per quarter and interest on long-term debt is $47 per quarter. Suppose that Paymore’s cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $343. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Work out the short-term financing requirements for the firm in the coming year using the above table. The firm pays no dividends. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign.)

First Second Third Fourth (need all 4 quarters)

Sources of cashCash at start of period

Net cash inflow

Cash at end of period

0000Minimum operating cash balance

Cumulative financing required

Answer 1