3) The same firm is considering relaxing its credit terms. Re-calculate the impact on borrowing for the same three-month period, assuming all sales are credit sales with 25% collected one-month later, 65% collected two-months later, and 10% collected three-months later. Disbursement timing and cash reserves do not change. Ex: April cash receipts = 25% of March sales (S70 x 25), 60% of Feb, sales ($60 x .65) and 10% of January sales ($50 x .10), which is equal to $61.5 Month Sales Forecast (millions) Cash Receipts Cash Disbursements January $50 February S60 March $70 April $80 $61.5 $100.0 May S110 $150.0 June $140 $175.0 July $190 SI 20.0 August $170 $100.0 September 580 $180.0 $50.0 October $50 $149.5 $25.0 November $25 $81.5 $10.0 December $25 546.8 $15.0 Item April May June Cash Receipts $61.5 $100 $175 Cash Disbursements $150 -Cash Flow + Beginning Cash $100.0 Ending Cash Cash Reserves $75.0 $75.0 $75.0 Net Cash Position Surplus Shortfall