Using the information below recalculate Dynamic Mattress's financing plan assuming assuming that the firm wishes to maintain a minimum cash balance of $10 million instead of $5 million. Assume the firm can convince the bank to extend its line of credit to $45 million.

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Short-term financing requirements (figures in millions) Quarter First Second Third Fourth Sources ofcash Cash at start of period Net cash inflow Cash at end of period Minimum operating cash balance Cumulative financing requiredS45.00 S 5.00 S (45.00) (40.00) 5.00 (40.00)S (55.00) 26.00 (55.00)(29.00) 5.00 60.00S 34.00 S (29.00) 35.00 6.00 5.00 S (1.00) (15.00) 5.00 S Dynamic Mattress's financing plan (figures in millions) Quarter First Second Third Fourth A. Cash requirements Cash required for operationsS 45.00S Interest on bank loan Interest on stretched payables 0.00 0.00 S 45.00S 15.00S (26.00) 0.80 0.79 S (35.00) 0.63 0.00 S (34.37) 0.80 0.00 Total cash required 15.80S (24.41) S - B. Cash raised in quarter S 40.00 Bank loarn Stretched payables Securities sold 0.00 5.00 S 45.00S 0.00 15.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 S 0.00 Total cash raised 15.80S 0.00 S C. Repayments Of stretched payables Of bank loan 0.00 0.00 0.00S 15.80 0.00 0.00 31.39 8.61 D. Addition to cash balances 0.00 0.00 0.00 S 2.98 E. Bank loan Beginning of quarter End of quarter 0.00S S 40.00S 40.00S 40.00 40.00S 31.39 S 31.39 0.00 Interest rate on bank loan Interest rate on payables Minimum old cash balance10.00 million Minimum new cash balance Extension of line credit 45.00 million 2.00% per quarter stretched 5.00% of deferred payment 5.00 milion