Question

Matthew Dean, the accounting manager of Todd Antique Company, is preparing his company’s cash budget for the next quarter. Todd desires to maintain a cash cushion of $4,000 at the end of each month. As cash flows fluctuate, the company either borrows or repays funds at the end of a month. It pays interest on borrowed funds at the rate of 1 percent per month.


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 Todd will report on its quarterly pro forma statement of cash flows.
c. Determine the amount of net cash flows from financing activities Todd will report on its quarterly pro forma statement of cashflows.


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  • CreatedFebruary 07, 2014
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