Short-term financing requirements

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Reference no: EM132029445

Short-Term Financing Requirements. Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $372 $360 $336 $384 $384 Suppose that Paymore's cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. Work out the short-term financing requirements for the firm in the coming year using a table like the following one, panel C. The firm pays no dividends. (Assume that Paymore's labour and administrative expenses are $65 per quarter and that interest on long-term debt is $40 per quarter. Work out the net cash inflow for Paymore for the coming year using a table like the following one, panel B.) Picture

Reference no: EM132029445

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