San Diego State University Operations And Supply Chain Management Assignment Help - Interest

Question - 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 - Sales Forecast, first
quarter if $540; second quarter is $530; third quarter is 510, fourth quarter is $550; Following Year-
first quarter is $550 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. As ...Read More sume that sales in the last quarter of the previous year were $510. Paymore's
labor and administrative expenses are $62 per quarter and that interest on long-term debt is $56 per
quarter. Suppose that Paymore's cash balance at the start of the first quarter is $40 and its minimum
acceptable cash balance is $50. W ork 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 Source of Cash; Cash at start
of period $ _______ ? _________ ? _________? ______? Net Cash Inflow $________? ________?
_________ ? ______? Cash at end of period $_______? __________? _________? _______?
Minimum operating Cash Bal. $_________? ___________? _________? _______? Cumulative
financing required $_________? ___________? _________? _______? ...Read Less

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