The accountant for Rooney\'s Dress Shop prepared the following cash budget. Roon

Question

The accountant for Rooney's Dress Shop prepared the following cash budget. Rooney's desires to maintain a cash cushion of $17,000 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 3 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 Rooney's will report on the third quarter pro forma statement of cash flows c. Determine the amount of net cash flows from financing activities Rooney'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 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.) Cash Budget Section 1: Cash receipts uI August September $ 49,000 Beginning cash balance Add cash receipts 193,000 213,000253,600 242,000 Total cash available Section 2: Cash payments 146,730 67,060 180,652 67,932 172,026 For inventory purchases For S&A; expenses For interest expense 61,000 Total budgeted disbursements 233,026 Section 3: Financing activities 8,974 Surplus (shortage) Borrowing (repayments) 8,026 Ending cash balance $ 17,000 $ 17,000 $ 17,000

Explanation / Answer

Cash Budget July August September Section 1: Cash Receipts Beginning cash balance 49000 17000 17000 Add cash receipts 193000 213000 253600 Total cash available 242000 230000 270600 Section 2: Cash payments For inventory purchases 172026 146730 180652 For S& A Expenses 61000 67060 67932 For intererst expense 0 240.78 30.92 Total budgeted disbursements 233026 214030.78 248614.92 Section 3: Financing activities Surplus (shortage) 8974 15969.22 21985.08 Borrowing (repayments) 8026 1030.78 -4985.08 Ending cash balance 17000 17000 17000

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