- Exercise 14 13a Static Preparing A Cash Budget Lo 14 5 The Accountant For Jean S Dress Shop Prepared The Following Cas 1 (68.59 KiB) Viewed 9 times
- Exercise 14 13a Static Preparing A Cash Budget Lo 14 5 The Accountant For Jean S Dress Shop Prepared The Following Cas 2 (32.92 KiB) Viewed 9 times
Exercise 14-13A (Static) Preparing a cash budget LO 14-5 The accountant for Jean's Dress Shop prepared the following cash budget. Jean's 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 a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Jean's will report on the third quarter pro forma
statement of cash flows. c. Determine the amount of net cash flows from financing activities Jean's will report on the third quarter pro forma
statement of cash flows. Complete this
question by entering your answers in the tabs below. 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.) Cash Budget July August September Section 1: Cash receipts Beginning cash balance $ 25,000 Add cash receipts 90,000 100,000 120,300 Total cash available 115,000 Section 2: Cash payments For inventory purchases 82,750 70,115 87.076 For S&A expenses 27,250 30,280 30,716 For interest expense 0 Total budgeted disbursements 110,000 Section 3: Financing activities Surplus (shortage) 5,000 5,000 Borrowing (repayments) Ending cash balance $ 10,000 S < Req A 0 S Req B and C >
b. Determine the amount of net cash flows from operating activities Jean's will report on the third quarter pro forma
statement of cash flows. c. Determine the amount of net cash flows from financing activities Jean's will report on the third quarter pro forma
statement of cash flows. Complete this
question by entering your answers in the tabs below. Req A Req B and C Determine the amount of net cash flows from both operating and financing activities Jean's will report on the third quarter pro forma
statement of cash flows. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Net cash (operating activities) Net cash (financing activities) < Req A Reqg B and C >