Oscar Fox, the accounting manager of Onaka Antique Company, is preparing his company's cash budget for the next quarter. Onaka desires to maintain a cash cushion of $2,000 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 Onaka will report on its quarterly pro forma statement of cash flows.
c. Determine the amount of net cash flows from financing activities Onaka will report on its quarterly pro forma statement of cash flows.

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Cash Budget Section 1: Cash Receipts July August September Beginning cash balance Add cash receipts $10,000 90,000 $100,000 96,000 104,000 Total cash available (a) Section 2: Cash Payments For inventory purchases For S&A expenses For interest expense 81,000 18,500 76,500 18,000 85,500 19,500 Total budgeted disbursements (b) Section 3: Financing Activities 99,500 Surplus (shortage) Borrowing (repayments) (c) 500 1,500 $ 2,000 Ending Cash Balance (a -b+ c) 2,000 $ 2,000