The accountant for Ericas Dress Shop prepared the following cash budget. Ericas desires to maintain a cash cushion of $17,000 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. (Any 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	$44,000
Add cash receipts	183,000	203,000	243,600
Total cash available	227,000
Section 2: Cash payments
For inventory purchases	167,026	141,730	175,652
For S&A expenses	56,000	62,060	62,932
For interest expense	0
Total budgeted disbursements	223,026
Section 3: Financing activities
Surplus (shortage)	3,974
Borrowing (repayments)	13,026
Ending cash balance	$17,000	$17,000	$17,000

b.

Determine the amount of net cash flows from operating activities Ericas will report on the third quarter pro forma statement of cash flows. (Enter any cash outflows with a minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.)

Net cash

c.

Determine the amount of net cash flows from financing activities Ericas will report on the third quarter pro forma statement of cash flows. (Enter any cash outflows with a minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.)

Net cash