The accountant for Teresa's Dress Shop prepared the following cash budget. Teresa's desires to maintain a cash cushion of $14,000 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. Round all computations to the nearest whole dollar.
b. Determine the amount of net cash flows from operating activities Teresa's will report on the third quarter pro forma statement of cash flows.
c. Determine the amount of net cash flows from financing activities Teresa's will report on the third quarter pro forma statement of cash flows.

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Cash Budget September July August Section 1: Cash receipts Beginning cash balance Add cash receipts $ 42,500 180,000 200,000 240,600 Total cash available (a) 222,500 Section 2: Cash payments For inventory purchases For S&A expenses For interest expense 140,230 165,526 54,500 174,152 61,432 ? 60,560 Total budgeted disbursements (b) Section 3: Financing activities Surplus (shortage) Borrowing (repayments) (c) Ending cash balance (a – b + c) ? 220,026 2,474 11,526 $ 14,000 $ 14,000 $ 14,000