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.

Net cash (operating activities) Net cash (financing activities) Net cash (operating activities) Net cash (financing activities)