The accountant for Zachary’s Dress Shop prepared the following cash budget. Zachary’s desires to maintain a cash cushion of $23,000 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 3 percent per month.

Required

1. Complete the cash budget by filling in the missing amounts.

2. Cash Budget	July	August	September
   Section 1: Cash receipts
   Beginning cash balance	$52,000
   Add cash receipts	199,000	219,000	259,600
   Total cash available	251,000
   Section 2: Cash payments
   For inventory purchases	175,026	149,730	183,652
   For S&A expenses	64,000	70,060	70,932
   For interest expense	0
   Total budgeted disbursements	239,026
   Section 3: Financing activities
   Surplus (shortage)	11,974
   Borrowing (repayments)	11,026
   Ending cash balance	$23,000	$23,000	$23,000

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

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