3 The accountant for Zachary's Dress Shop prepared the following cash budget. Zachary's desires to maintain a cash cushion of $23,000 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 a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Zachary's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Zachary's will report on the third quarter pro forma statement of еВook cash flows. Hint Print 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 $ 52,000 Add cash receipts 199,000 219,000 259,600 Total cash available 251,000 Section 2: Cash payments For inventory purchases 175,026 149,730 183.652 For S&A expenses 64,000 70,060 70,932 For interest expense Total budgeted disbursements 239,026 Section 3: Financing activities Surplus (shortage) 11,974 Borrowing (repayments) 11,026 Ending cash halance 23.000 24 23.000 $ 23.000
3 The accountant for Zachary's Dress Shop prepared the following cash budget. Zachary's desires to maintain a cash cushion of $23,000 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 a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Zachary's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Zachary's will report on the third quarter pro forma statement of еВook cash flows. Hint Print 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 $ 52,000 Add cash receipts 199,000 219,000 259,600 Total cash available 251,000 Section 2: Cash payments For inventory purchases 175,026 149,730 183.652 For S&A expenses 64,000 70,060 70,932 For interest expense Total budgeted disbursements 239,026 Section 3: Financing activities Surplus (shortage) 11,974 Borrowing (repayments) 11,026 Ending cash halance 23.000 24 23.000 $ 23.000
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 16MC: In an attempt to better understand RR’s cash position, Johnson developed a cash budget for the first...
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