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Short-term financing requirements

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Suppose that Paymore's cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. Work out the short-term financing requirements for the firm in the coming year using a table like Table 19-6, Panel C. The firm pays no dividends.

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The solution explains how to determine the short-term financing requirements for the firm.

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Please see the attached file. Since the question follows from the previous question, I have put the details of previous question also. The answer to this question starts from row 50.

1. Forecasting Payments. Calculate Paymore's cash payments to its suppliers under the assumption that
the firm pays for its goods with a 1-month delay. Therefore, 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.

2. Forecasting Collections. Now suppose that Paymore's customers pay their bills with a 2-month delay.
What is the forecast for Paymore's cash receipts in each quarter of the coming year? Assume that sales
in the last quarter of the previous year were $336.

3. ...

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