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Recalculate Dynamic Mattress’s financing plan (Spreadsheet 19.3) assuming that the firm wishes to maintain a minimum cash balance of $25 million instead of $20 million. Assume the firm can convince the bank to extend its line of credit to $40 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$ [removed]  $ 18.00  $ −22.00  $ −30.00  
      Interest on bank loan[removed]  [removed]  [removed]  [removed]  
      Interest on stretched payables[removed]  [removed]  [removed]  [removed]  
 
        Total cash required$ [removed]  $ [removed]  $ [removed]  $ [removed]  
  B. Cash raised in quarter    
      Bank loan[removed]  [removed]  [removed]  [removed]  
      Stretched payables[removed]  [removed]  [removed]  [removed]  
      Securities sold[removed]  [removed]  [removed]  [removed]  
 
        Total cash raised$ [removed]  $ [removed]  $ [removed]  $ [removed]  
  C. Repayments    
      Of stretched payables[removed]  [removed]  [removed]  [removed]  
      Of bank loan[removed]  [removed]  [removed]  [removed]  
  D. Addition to cash balances[removed]  [removed]  [removed]  [removed]  
  E. Bank Loan    
      Beginning of quarter[removed]  [removed]  [removed]  [removed]  
 
      End of quarter$ [removed]  $ [removed]  $ [removed]  $ [removed]  
 
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