finance help needed 0

Get perfect grades by consistently using www.college-experts.com. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

Paymore Products places orders for goods equal to 80% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows:

 

  Quarter in Coming Year

 

  Following Year

 

    First   Second   Third   Fourth      First Quarter
  Sales forecast $550   $540   $520   $560     $560        

 

The firm pays for its goods with a 1-month delay. Therefore, on average, three-fourths of purchases are paid for in the quarter that they are purchased, and one-fourth are paid in the following quarter.

 

Paymore’s customers pay their bills with a 2-month delay. Therefore, on average, two-fourths of sales are collected in the quarter that they are sold, and two-fourths are collected in the following quarter. Assume that sales in the last quarter of the previous year were $520.

 

Paymore’s labor and administrative expenses are $60 per quarter and that interest on long-term debt is $58 per quarter.

 

Suppose that Paymore’s cash balance at the start of the first quarter is $35 and its minimum acceptable cash balance is $60. Work out the short-term financing requirements for the firm in the coming year. The firm pays no dividends. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

 

  Quarter

 

        First       Second       Third       Fourth
  Sources of cash        
  Cash at start of period $ [removed]   $ [removed]   $ [removed]   $ [removed]  
  Net cash inflow [removed]   [removed]   [removed]   [removed]  
 



  Cash at end of period [removed]   [removed]   [removed]   $ [removed]  
  Minimum operating cash balance [removed]   [removed]   [removed]   [removed]  
 



  Cumulative financing required $ [removed]   $ [removed]   $ [removed]  
Writerbay.net

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper