Acct301 week2

6 The accountant for Finch's Dress Shop prepared the following cash budget. Finch's desires to maintain a cash cushion of $20,000 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. 5 points Required a. Complete the cash budget by filling In the missing amounts. b. Determine the amount of net cash flows from operating activities Finch's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Finch's will report on the third quarter pro forma statement of cash flows. * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the cash budget by filling in the missing amounts. (Any shortages or repayments should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) Cash Budget July August September Section 1: Cash receipts Beginning cash balance $ 45,500 $ 20,000 5 20,000 Add cash receipts 186,000 208,000 246.600 Total cash available 231.500 228,000 286,600 Section 2: Cash payments For inventory purchases 168,526 143,230 177,152 For S&A expenses 57.500 63,560 64.432 For interest expense 0 291 0 20 X Total budgeted disbursements 226.026 207,081 242,000 X Section 3: Financing activities Surplus (shortage) 5,474 18,919 24,394 x Borrowing (repayments) 14.526 1.081 4,394 X