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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. Following Year First Quarter $34 Quarter in Coming Year Second Third Fourth $360 $336 $384 First $372 Sales forecast 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 'O' 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.) Quarter Second Third First Fourth $ 0.00 $ 0.00 $ 0.00 $ 0.00 (figures in S millions) 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 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 0.00 0.00 0.00

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