Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is $57,000. Budgeted cash and credit sales for June are $142,000 and $594,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Sixty percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $719,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $31,000 cash balance before the interest payment. Her annual interest rate is 9 percent. Required a. Compute the amount of funds Ms. Bragg needs to borrow for June. b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement. c. What amount will the restaurant report as interest expense on the July pro forma income statement? (Round your answers to 2 decimal places.) a. Amount to be borrowed b. Interest expense (June) C. Interest expense (July) The accountant for Walton's Dress Shop prepared the following cash budget. Walton's desires to maintain a cash cushion of $22,000 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. Required a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Walton's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Walton's will report on the third quarter pro forma statement of cash flows. 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 $ 51,500 Add cash receipts 198,000 218,000 258,600 Total cash available 249,500 Section 2: Cash payments For inventory purchases 174,526 149,230 183,152 For S&A expenses 63,500 69,560 70,432 For interest expense 0 Total budgeted disbursements 238,026 Section 3: Financing activities Surplus (shortage) Borrowing (repayments) Ending cash balance 11,474 10,526 $ 22,000 $ 0 $ 0 Req A Req B and C > The accountant for Walton's Dress Shop prepared the following cash budget. Walton's desires to maintain a cash cushion of $22,000 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. Required a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Walton's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Walton's will report on the third quarter pro forma statement of cash flows. Complete this question by entering your answers in the tabs below. Req A Req B and C Determine the amount of net cash flows from both operating and financing activities Walton's will report on the third quarter pro forma statement of cash flows. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Net cash (operating activities) Net cash (financing activities)