The accountant for the end of each month. 2 percent per month. Stuart\'s Dress S

Question

The accountant for the end of each month. 2 percent per month. Stuart's Dress Shop pr epared the following cash budget. Stuart's desires to maintain a cash cushion of $19,000 at Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of Required 10 oints a. Complete the cash budget by filling in the missing amounts. etermine the amount of net cash flows from operating activities Stuart's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Stuart's will report on the third quarter pro forma statement of cash flows. eBook 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.) August Septemb Cash Budget Section 1: Cash receipts S 50,000 Beginning cash balance Add cash receipts 195,000 215,000 255,600 245,000 Total cash available Section 2: Cash payments For inventory purchases For S&A; expenses For interest expense 173,026 147.730 181,652 62,00068,060 68,932 0 235,026 Total budgeted disbursements Section 3: Financing activities Surplus (shortage) Borrowing (repayments) 9,974 9,026 19,000 19,000 S 19,000 Ending cash balance Req B and C>

Explanation / Answer

Answer:b Cash flow from operating activities is equal to total (i.e., sum of the monthly amounts) cash receipts from customers minus the total (i.e., sum of the monthly amounts) of cash payments for inventory, S&A expense, and interest [i.e., $665600 – ($235026+ $215970.50+ $250.783.90) = ($36,180.40) net cash outflow.]

Answer:A Cash Budget July August September QTR Cash receipts: Beg. Cash balance 50000 19000 19000 50000 Add: cash receipts 195000 215000 255600 665600 Total cash available 245000 234000 274600 715600 Cash Payments: For inventory purchases 173026 147730 181652 502408 For S&A expenses 62000 68060 68932 198992 For interest expenses 0 180.52 199.93 380.45 Total budgeted disbursements 235026 215970.5 250783.9 701780.5 Financing activities: Surplus (Shortage) 9974 18029.48 23816.07 13819.55 Borrowing (Repayments) 9026 970.52 -4816.07 5180.45 Ending cash balance 19000 19000 19000 19000 Interest=9026*2%=180.52 Interest=(9026+970.52)*2%=199.93

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.