The accountant for Franklins Dress Shop prepared the following cash budget. Franklin desires to maintain a cash
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Question:
The accountant for Franklin’s Dress Shop prepared the following cash budget. Franklin desires to maintain a cash cushion of $21,000 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
Complete the cash budget by filling in the missing amounts.
Determine the amount of net cash flows from operating activities Franklin’s will report on the third quarter pro forma statement of cash flows.
Determine the amount of net cash flows from financing activities Franklin’s will report on the third quarter pro forma statement of cash flows.
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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