It is the beginning of January. Actual sales for the previous quarter (Q4) and estimated sales for the next five quarters are as follows (in $ million): Quarter Q4 Q1 Q2 Q3 Q4 Q1 Sales 67 63 68 70 80.4 75 You collect 20% of sales in the quarter of the sale, and the remainder in the next quarter. You expect to always spend 40% of the following quarter's sales on purchases of components from suppliers. You pay 80% of purchases in the quarter of the purchase, and the remainder in the next quarter. Wages and other expenses add up to 35% of each quarter's sales. You have to pay $4 million in interest and dividends each quarter, and plan to spend $60 million on new machinery in Q2. You start the year with $3 million in cash. Any additional short-term borrowing will be done at a quarterly interest rate of 1%.