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 as follows:

Item Cask Inflow Cash Outflow

Clothes $1,400

Interest received $440

Dining out $480

Groceries $760

Salary $4,300

Auto payment $362

Utilities $270

Mortgage $1,280

Gas $213

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?