The accountant for Franklin’s Dress Shop prepared the following cash budget. Franklin desires to maintain a cash cushion of $21,000 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 3 percent per month.

Required

Complete the cash budget by filling in the missing amounts.

Determine the amount of net cash flows from operating activities Franklin’s will report on the third quarter pro forma statement of cash flows.

Determine the amount of net cash flows from financing activities Franklin’s will report on the third quarter pro forma statement of cash flows.

 

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.) August September Cash Budget Section 1: Cash receipts Beginning cash balance Add cash receipts Total cash available Section 2: Cash payments For inventory purchases For S&A expenses For interest expense Total budgeted disbursements Section 3: Financing activities Surplus (shortage) Borrowing (repayments) Ending cash balance. July $ 46,000 187,000 207,000 233,000 169,026 58,000 0 227,026 143,730 64,060 247,600 177,652 64,932 5,974 15,026 $ 21,000 $ 21,000 $ 21,000