The accountant for Campbei\'s Dress Shop prepared the following cash budget. Cam
ID: 2594491 • Letter: T
Question
The accountant for Campbei's Dress Shop prepared the following cash budget. Campbel's desires to maintain a cash cushion of $18,000 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 filiag in the missing amounts. I's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Campbell'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 July August September Beginning cash balance Add cash receipts 44,500 18,000 18,000 84,000 204,000 244,600 228,500 222,000 262,600 Total cash available Section 2: Cash payments For inventory purchases For S&A; expenses For interest expense 167,526 142,230 176,152 56500 62,56063,432 Total budgeted disbursements 224,026Explanation / Answer
Interest expense for August month is dollar 406
Total budget disbursement for aug month is dollar 205196
Surplus for aug month is dollar 16804
Borrowing for August month is dollar 1196
interest expense for sep month is dollar 442
Total budgeted disbursement for sep month is dollar240026
Surplus for sep month dollar 22574
Repayment for sep month is dollar 4574
Net cash from operating activities for aug month is dollar -790
Net cash from operating activities for sep month is dollar 5016
Net cash from financing activity for aug month is dollar 790
Net cash from financing activity for sep month is dollar -5016
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