Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows:

	Quarter in Coming Year					Following Year
	First	Second	Third	Fourth		First Quarter
Sales forecast	$492	$480	$456	$660		$660

The firm pays for its goods with a 1-month delay. Therefore, on average, two-thirds of purchases are paid for in the quarter that they are purchased, and one-third are paid in the following quarter.

Paymore%u2019s customers pay their bills with a 2-month delay. Therefore, on average, one-thirds of sales are collected in the quarter that they are sold, and two-third are collected in the following quarter. Assume that sales in the last quarter of the previous year were $456.

Paymore%u2019s labor and administrative expenses are $78 per quarter and that interest on long-term debt is $54 per quarter.

Suppose that cash balance at the start of the first quarter is $50 and its minimum acceptable cash balance is $40.

Now assume that Paymore can borrow up to $250 from a line of credit at an interest rate of 2% per quarter. Prepare a short-term financing plan. Refer Spreadsheet 19.3 (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Quarter
	First	Second	Third	Fourth
A. Cash requirements
Cash required for operations	$	$	$	$
Interest on bank loan
Total cash required	$	$	$	$
B. Cash raised in quarter
Line of credit
Total cash raised	$	$	$	$
C. Repayments of bank loan
D. Addition to cash balances
E. Line of credit
Beginning of quarter
End of quarter	$	$	$	$