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...
Related questions
Question
Having an issue with this problem. A & B
Thank you
Transcribed Image Text: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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College