Problem $19-12$ Short$-$Term Financing Plan $($LO$3)$

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.

Quarter in Coming Year Following Year

First Second Third Fourth First Quarter

Sales forecast $ $460$ $ $334$ $ $351$ $ $399$ $ $399$

Paymore$$s labor and administrative expenses are $$80$ per quarter and interest on long$-$term debt is $$55$ per quarter. Paymore$$s cash balance at the start of the first quarter is $$40$ and its minimum acceptable cash balance is $$35.$ Assume that Paymore can borrow up to $$351$ from a line of credit at an interest rate of $2\%$ per quarter. On average, one$-$third of sales are collected in the quarter that they are sold, and two$-$thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $$351.$ 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.

Note: Leave no cells blank. Enter $\text{'}0\text{'}$ when necessary. Negative amounts should be indicated by a minus sign. Round order, payment, and collection calculations to the nearest whole number. Enter your answers in the Table in millions of dollars, rounded to $2$ decimal places.Problem $19-12$ Short$-$Term Financing Plan $($LO$3)$

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.

$\backslash$table$[[,$Quarter in Coming Year,Following Year$],[,$First,Second,Third,Fourth,First Quarter$],[$Sales forecast,$$460,$$$334,$$$351,$$$399,$$$399$