Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The accountant for Jeans Dress Shop prepared the following cash budget. Jeans desires to maintain a cash cushion of $10,000 at the end of each

The accountant for Jeans Dress Shop prepared the following cash budget. Jeans desires to maintain a cash cushion of $10,000 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

Complete the cash budget by filling in the missing amounts.

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

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

image text in transcribed

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.) July Cash Budget Section 1: Cash receipts August September Beginning cash balance Add cash receipts 25,000 90,000100,000 115,000 120,300 Total cash available Section 2: Cash payments 87,076 30,716 82,750 70,115 For inventory purchases For S&A expenses For interest expense 27,25030,280 110,000 Total budgeted disbursements Section 3: Financing activities Surplus (shortage) Borrowing (repayments) 5,000 5,000 Ending cash balance $10,000 10,00010,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jan R. Williams, Susan F. Haka, Mark S. Bettner, Joseph V. Carcello

12th Edition

0071116796, 978-0071116794

More Books

Students also viewed these Accounting questions

Question

What are the other economic side effects of accidents?

Answered: 1 week ago