the accountant for lori s dress shop prepared the following cash budget lori s desir 666917

Preparing a cash budget

The accountant for Lori’s Dress Shop prepared the following cash budget. Lori’s desires to maintain a cash cushion of $14,000 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.

Cash Budget	July	August	September
Section 1: Cash receipts
Beginning cash balance	$43,000	$ ?	$ ?
Add cash receipts	183,000	196,000	240,200
Total cash available (a)	226,000	?	?
Section 2: Cash payments
For inventory purchases	163,646	139,900	172,474
For S&A expenses	54,000	62,060	61,536
For interest expense	0	?	?
Total budgeted disbursements (b)	217,646	?	?
Section 3: Financing activities
Surplus (shortage)	8,354	?	?
Borrowing (repayments) (c)	5,646	?	?
Ending cash balance (a b + c)	$14,000	$14,000	$14,000

Required

a. Complete the cash budget by filling in the missing amounts. Round all computations to the nearest whole dollar.

b. Determine the amount of net cash flows from operating activities Lori’s will report on the third quarter pro forma statement of cash flows.

c. Determine the amount of net cash flows from financing activities Lori’s will report on the third quarter pro forma statement of cash flows.