P1–3 Cash flows It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account, and her bank loans money at 6 percent per year while it offers short-term investment rates of 5 percent. Jane’s cash flows during August were as follows:

a. Determine Jane’s total cash inflows and cash outflows.

b. Determine the net cash flow for the month of August.

c. If there is a shortage, what are a few options open to Jane?

d. If there is a surplus, what would be a prudent strategy for her to follow?

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Item Cash inflow Cash outflow Clothes -$1,000 Interest received $ 450 Dining out -500 Groceries -800 Salary 4,500 Auto payment -355 Utilities -280 Mortgage -1,200 Gas -222