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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.

Paymores labor and administrative expenses are $72 per quarter and interest on long-term debt is $47 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 $343 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 $343. 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.)

Following Quarter in Coming Year Year First Second Third Fourth First Quarter $391 Sales forecast $396 $333 $343 $391 Quarter (figures in $ millions) Fourth First Second Third 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

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