The accountant for Tricia’s Dress Shop prepared the following cash budget. Tricia’s desires to maintain a cash cushion of \($14,000\) at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 2 percent per month.

Required

a. Complete the cash budget by filling in the missing amounts. Round all computations to the nearest whole dollar.

b. Determine the amount of net cash flows from operating activities Tricia’s will report on the third quarter pro forma statement of cash flows.

c. Determine the amount of net cash flows from financing activities Tricia’s will report on the third quarter pro forma statement of cash flows.

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Cash Budget Section 1: Cash Receipts Beginning cash balance Add cash receipts Total cash available (a). Section 2: Cash Payments For inventory purchases For S&A expenses July August September $ 42,500 $ ? 180,000 200,000 222,500 ? $ ? 240,600 ? 165,526 140,230 174,152 54,500 60,560 61,432 For interest expense 0 ? ? Total budgeted disbursements (b) 220,026 ? ? Section 3: Financing Activities Surplus (shortage) 2,474 ? ? Borrowing (repayments) (c) 11,526 ? ? Ending Cash Balance (a - b + c) $ 14,000 $ 14,000 $ 14,000