Assuming that Paymore's labour and administrative expenses are $65 per quarter and that interest on long-term debt
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First Quarter: Second Third Fourth A. Accounts receivable Receivables (beginning of period) 30.0 32.5 30.7 38.2 Sales 116.0 87.5 78.5 131.0 Collections On sales in current period (80%) On sales in previous perlod (20%) Total collections 10 70.0 62.8 92.8 104.8 8. 15.0 17.5 15.7 23.2 85.0 80.3 108.5 128.0 Receivables (end of period) = rows 4+5-9 32.5 30.7 41.2 38.2 11 B. Cash budget Sources of cash 12 13 14 Collections of accounts receivable (row 9) 85.0 80.3 108.5 128.0 15 Other Total collections Uses of cash Payments of accounts payable 1.5 0.0 12.5 0.0 16 86.5 80.3 121.0 128.0 17 55.0 18 65.0 60.0 50.0 Labour & other expenses 19 30.0 30.0 30.0 30.0 Capital expenses Texes, interest, and dividends Total uses 20 32.5 1.3 5.5 8.0 21 4.0 4.0 4.5 5.0 95.3 22 131.5 95.0 93.0 23 24 Net cash inflow = sources - uses -45.0 26.0 35.0 -15.0 25 C. Short-term financing requirements Cash at start of period + Net cash inflow (from row 24) = Cash at end of periodo Minimum operating balance Cumulative financing required (row 30-29) 26 5.0 27 -40.0 -55.0 -29.0 28 -45.0 -15.0 26.0 35.0 29 -40.0 -55.0 -29.0 6.0 30 5.0 5.0 5.0 5.0 34.0 -1.0 31 45.0 60.0 33
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Quarter First Second Third Fourth Sources of cash Collections on trade receivables 348 368 352 352 ...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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