FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The accountant for Finch's Dress Shop prepared the following cash budget. Finch's desires to maintain a cash balance of $20,000 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.
b. Determine the amount of net cash flows from operating activities Finch's will report on the third quarter pro forma statement of cash
flows.
c. Determine the amount of net cash flows from financing activities Finch'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
S
Complete the cash budget by filling in the missing amounts.
Note: 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
$
45,500
Add cash receipts
Total cash available
186,000
231,500
206,000
246,600
Section 2: Cash payments
For inventory purchases
168,526
143,230
177,152
For S&A expenses
57,500
63,560
64,432
For interest expense
0
226,026
Total budgeted disbursements
Section 3: Financing activities
Surplus (shortage)
Borrowing (repayments)
Ending cash balance
5,474
14,526
$ 20,000 $ 20,000
$
20,000
Req A
Req B and C >
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