The accountant for Thorntons Dress Shop prepared the following cash budget. Thorntons desires to maintain a cash cushion of $20,000 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 Thorntons will report on the third quarter pro forma statement of cash flows.

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

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.)

Cash Budget	July	August	September
Section 1: Cash receipts
Beginning cash balance	$50,500
Add cash receipts	196,000	216,000	256,600
Total cash available	246,500
Section 2: Cash payments
For inventory purchases	173,526	148,230	182,152
For S&A expenses	62,500	68,560	69,432
For interest expense	0
Total budgeted disbursements	236,026
Section 3: Financing activities
Surplus (shortage)	10,474
Borrowing (repayments)	9,526
Ending cash balance	$20,000	$0	$0