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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:Question 25, P1-3 (similar to)
Part 1 of 5
Cash flows It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account and her bank loans money at 6% per year while it offers short-term investment rates of 5%. Jane's cash flows during August were as follows:
a. Determine Jane's total cash inflows and cash outflows.
b. Determine the net cash flow for the month of August.
c. If there is a shortage, what are a few options open to Jane?
d. If there is a surplus, what would be a prudent strategy for her to follow?
--.
a. Jane's total cash inflows are $
(Round to the nearest dollar.)
Data table
(Click the icon here a in order to copy the contents of the data table below into a
spreadsheet.)
Item
Cash inflow
Cash outflow
Clothes
$1,200
Interest received
$440
$480
$810
Dining out
Groceries
Salary
Auto payment
$4,600
$356
$290
$1,240
$226
Utilities
Mortgage
Gas
Print
Done
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