Use the following information for Crave Corp. (Crave) to produce a cash budget and to determine the external financing required for April and May.

• Sales for January, February, and March were $75 mln, $35 mln, and $40 mln, respectively.

• The month-over-month increase in sales for April and May are projected to be 10% and

  15%, respectively.

• 60% of sales are in cash, 25% is collected in 1 month, 10% in 2 months, and 3% in 3

  months. The remainder is written off as bad debt.

• The firms COGS are 70% of sales. The firm typically pays suppliers 15% in cash, 70% in

  one month, and the remainder in two months.

• The firms salaries have a variable pay component, costing 5% of the prior months sales,

  plus a fixed portion of $4 mln.

• Other monthly fixed expenses total $15 mln.

• The firm has long-term debt outstanding with a face value of $75 mln. The firms debt

  consists of coupon bonds that have a coupon rate of 4.5%, a YTM of 6.5%, and 7 years

  remaining until maturity. Coupon payments are made semi-annually in April and October.

• Crave Corp. plans to repurchase 2% of its outstanding common shares in May.

  Management anticipates that the firms shares will be priced at $15 per share at the time of

  repurchase and the firm currently has 5.7 mln shares outstanding.

• At the end of March, the firm has a cash balance of $35 mln and wishes to maintain a

  minimum cash balance of $30 mln.