Dynabase Tool has forecast its total funds requirements for the coming year as shown in the following table.

January	$2,000,000	July	$13,000,000
February	$2,000,000	August	$14,000,000
March	$2,000,000	September	$9,000,000
April	$4,000,000	October	$5,000,000
May	$5,000,000	November	$3,000,000
June	$8,000,000	December	$3,000,000

a. Divide the firms monthly funds requirement into (1) a permanent component and (2) a seasonal component, and find the monthly average for each of these components. b. Describe the amount of long-term and short-term financing used to meet the total funds requirement under (1) an aggressive funding strategy and (2) a conservative funding strategy. Assume that, under the aggressive strategy, longterm funds finance permanent needs and short-term funds are used to finance seasonal needs. c. Assuming that short-term funds cost 5% annually and that the cost of longterm funds is 10% annually, use the averages found in part a to calculate the total cost of each of the strategies described in part b.Assume that the firm can earn 3% on any excess cash balance. d. Discuss the profitability risk trade-offs associated with the aggressive strategy and those associated with the conservative strategy