finance help needed

Paymore Products places orders for goods equal to 80% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows:


  Quarter in Coming Year


  Following Year


    First   Second   Third   Fourth      First Quarter
  Sales forecast $550   $540   $520   $560     $560        


The firm pays for its goods with a 1-month delay. Therefore, on average, three-fourths of purchases are paid for in the quarter that they are purchased, and one-fourth are paid in the following quarter.


Paymore’s customers pay their bills with a 2-month delay. Therefore, on average, two-fourths of sales are collected in the quarter that they are sold, and two-fourths are collected in the following quarter. Assume that sales in the last quarter of the previous year were $520.


Paymore’s labor and administrative expenses are $60 per quarter and that interest on long-term debt is $58 per quarter.


Suppose that Paymore’s cash balance at the start of the first quarter is $35 and its minimum acceptable cash balance is $60. Work out the short-term financing requirements for the firm in the coming year. The firm pays no dividends. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)




        First       Second       Third       Fourth
  Sources of cash        
  Cash at start of period $ [removed]   $ [removed]   $ [removed]   $ [removed]  
  Net cash inflow [removed]   [removed]   [removed]   [removed]  

  Cash at end of period [removed]   [removed]   [removed]   $ [removed]  
  Minimum operating cash balance [removed]   [removed]   [removed]   [removed]  

  Cumulative financing required $ [removed]   $ [removed]   $ [removed]  

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