13. Short-term financial plans (S30.3) Dynamic Mattress decides to lease its new mattressstuffing machines rather than buy them. As a result, capital expenditure in the first quarter is reduced by $50 million, but the company must make lease payments of $2.5 million for each of the four quarters. Assume that the lease has no effect on tax payments until after the fourth quarter. Construct two tables like Tables 30.5 and 30.6 showing Dynamic’s cumulative financing requirement and a new financing plan. Check your answer using Dynamic’s spreadsheet.

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Dynamic Mattress’s spreadsheet BEYOND THE PAGE mhhe.com/brealey14e Try It!

Dynamic Mattress’s spreadsheet BEYOND THE PAGE mhhe.com/brealey14e Try It!

Dynamic Mattress’s spreadsheet 882 Part Ten Financial Planning and Working Capital Management