Recalculate Dynamic Mattress’s financing plan (Spreadsheet 19.3) assuming that the firm wishes to maintain a minimum cash balance of $35 million instead of $30 million. Assume the firm can convince the bank to extend its line of credit to $100 million. (Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.)
Quarter
First Second Third Fourth
A. Cash requirements
Cash required for operations $ $ 30.00 $ −34.00 $ −75.00
Interest on bank loan
Interest on stretched payables
Total cash required $ $ $ $
B. Cash raised in quarter
Bank loan
Stretched payables
Securities sold
Total cash raised $ $ $ $
C. Repayments
Of stretched payables
Of bank loan
D. Addition to cash balances
E. Bank Loan
Beginning of quarter
End of quarter $ $ $ $
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