The accountant for Bairds Dress Shop prepared the following cash budget. Bairds desires to maintain a cash cushion of $16,000 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 1 percent per month.

Required

1. Complete the cash budget by filling in the missing amounts.

2. Determine the amount of net cash flows from operating activities Bairds will report on the third quarter pro forma statement of cash flows.

3. Determine the amount of net cash flows from financing activities Bairds will report on the third quarter pro forma statement of cash flows.

July August September Cash Budget Section 1: Cash receipts Beginning cash balance Add cash receipts $ 43,500 182,000 225,500 202,000 242,600 Total cash available Section 2: Cash payments For inventory purchases 166,526 141,230 61,560 175,152 62,432 For S&A expenses 55,500 For interest expense 0 222,026 Total budgeted disbursements Section 3: Financing activities Surplus (shortage) Borrowing (repayments) Ending cash balance 3,474 12,526 16,000 $ $ 16,000 $ 16,000 Net cash (operating activities) Net cash (financing activities)