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.

Transcribed Image Text:

Cash Budget July ust September Section 1: Cash Receipts Beginning cash balance Add cash receipts 20,000 $ ? 180,000 200,000 192,000 208,000 Total cash available (a) Section 2: Cash Payments For inventory purchases For S&A expenses For interest expense 162,000 37,000 153,000 36,000 171,000 39,000 19,000 Total budgeted disbursements (b) Section 3: Financing Activities 1,000 3,000 Ending Cash Balance (a-bc) 4,000 Surplus (shortage) Borrowing (repayments) (c) 4,000 4,000