Balance sheet year-end 2018(millions$)

Asset----------------------liabilities

Cash 5------------------Accounts payable 40

Accounts Receivable 25

Inventory 70---------------------Long term debt 160

Net Fixed Assets 400---------Equity 300

=

Total Assets 500---------Total Liabilities and Equity 500

2019 Forecast(million dollar)

Quarter 1:

Sales 50,purchases 40, other expenses 10

Quarter 2:

Sales 20,purchases 30, other expenses 10

Quarter 3:

Sales 120,purchases 50, other expenses 10

Quarter 4:

Sales 30,purchases 50, other expenses 10

RTY Companys year-end balance sheet for 2018 and forecasted quarterly cash flows for 2019 are given .Company always pays for its purchases one quarter after the purchase. 50% of all sales are collected in the current quarter and 50% in the next quarter. Other expenses are paid in the current quarter. a. Prepare the quarterly cash budget for the company for 2019. b. Assuming all forecasts will be accurate, how much external long-term financing will the company need if the company does not want to use any short-term financing at all?