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 %6%

per year while it offers short-term investment rates of

5 %5%.

Jane's cash flows during August were as follows:

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. (Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet.)

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?

Item

Cash inflow

Cash outflow

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Clothes

$1,100

Interest received

$430

Dining out

$460

Groceries

$810

Salary

$4,600

Auto payment

$342

Utilities

$290

Mortgage

$1,130

Gas

$208