Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $436 $348 $348 $396 $396.

Paymores labor and administrative expenses are $77 per quarter and interest on long-term debt is $52 per quarter. Paymores cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. Assume that Paymore can borrow up to $348 from a line of credit at an interest rate of 2% per quarter. On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $348. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Prepare a short-term financing plan using the above table. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 2 decimal places.)

(figures in $ millions) 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 $ $ $ $

rev: 05_31_2018_QC_CS-128190, 06_07_2018_QC_CS-128190