FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The accountant for Jean’s Dress Shop prepared the following
Required
-
Complete the cash budget by filling in the missing amounts.
-
Determine the amount of net
cash flows from operating activities Jean’s will report on the third quarter pro forma statement of cash flows. -
Determine the amount of net cash flows from financing activities Jean’s will report on the third quarter pro forma statement of cash flows.a.
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 Borrowing (repayments) 5,000 Ending cash balance $10,000 $0 $0 - b.
Net cash (operating activities) Net cash (financing activities)
- b.
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