Table 3.3 shows the December 31, 2009 pro-forma balance sheet and income statements for R&E Supplies, Inc. The pro-forma balance sheet shows that R&E Supplies will need external funding from the bank of $1.4 million. However, they show $1.27 million in cash and short-term securities. Why are they going to the bank when they have most of the required amount in their cash account?

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