Q6 (15 PTS) You are the treasurer of Hodgkiss Suppliers Corporation (HSC), a sporting goods equipment distributor. You are trying to determine the cash flow needs for the company for the first three months of 2006 Sales Purchases S.G. &A Cash balance Actual Figures 2005 Oct Dec $500 $600 $650 520 580 580 100 100 100 10 Estimated-2006 Jan Feb Mar $700 $750 $800 620 660 100 100 100 Other information: - 50% of sales are on a cash basis of the remaining 50% half is collected in the following month and the other half two months later. - All purchases are paid for in the following month. Selling, general, and administrative (S. G. & A) costs are fixed, and are paid as incurred. Dividends payable in February are $20. - Interest payment is due in March of $50. - Minimum cash balance required is $10. a. Estimate what if any, HSC requires in the way of additional external financing at the beginning of January to ensure they have enough cash to maintain a $10 cash balance through until the end of March, b. If additional external financing is not available, name three approaches HSC might use in order to avoid the need for external financing