Cash flowsIt 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% per year while it offers short-term investment rates of 5%. Jane's cash flows during August were asfollows:

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

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?