Problem 19-11 Short-Term Financing Requirements

Problem 19-11 Short-Term Financing Requirements (LO3) Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below. Paymore's labor and administrative expenses are $70 per quarter and interest on long-term debt is $45 per quarter. Suppose that Paymore's cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. 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 $341. 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. Work out the short-term financing requirements for the firm in the coming year using the above table. The firm pays no dividends. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign