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. Sales forecast (figures in 5 millions) A Cash requirements Cash required for operations Interest on bank loan Total cash required B. Cash raised in quarter First $372 Paymore's labor and administrative expenses are $65 per quarter and interest on long-term debt is $40 per quarter. Paymore's 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 $100 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 $336. 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 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.) 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 Quarter in Coming Year Second $360 S S Third $336 First 0.00 $ Fourth $384 0.00 S 0.00 Second Quarter Following Year First Quarter $384 0.00 S 0.00 $ 0.00 Third 0.00 $ 0.00 $ 0.00 Fourth 0.00 0.00 0.00

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