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It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane
It 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 Clothes Cash inflow Cash outflow $1,100 Interest received $440 Dining out $540 Groceries $760 Salary $4,500 Auto payment $366 Utilities $280 Mortgage $1,190 Gas $233 A. Jane's total cash inflows are $ Jane's total cash outflows are $ (Important: Round to the nearest whole dollar in both answers) B. Jane's net cash flow for the month of August is $ (Important: Round to the nearest whole dollar. Remember that a positive number indicates a surplus and a negative number indicates a shortage.) C. Of the following two statements, which best describes the few options open to Jane if there is a shortage? The statement that best describes her options is (enter either '1' or '2' to indicate your answer) 1. Jane can borrow money from her bank or withdraw money from an existing savings/investing account. Another alternative is to cut down on any unnecessary expenses. 2. Jane can open a savings/investing account or increase the balance on an existing account. Alternatively, she could reduce debt by paying more for some obligations like her auto loan, credit cards or mortgage. In order to maintain her monthly surplus she should maintain her current level of expenses.
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