It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account, and her bank loans money at 6% per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were as follows: Items Item Cash inflow Cash outflow Clothes $1,000 Interest received $ 450 Dining out 500 Groceries 800 Salary 4,500 Auto payment 355 Utilities 280 Mortgage 1,200 Gas 222 You are required to: Determine Jane’s total cash inflows and cash outflows. b. Determine the net cash flow for the month of August. c. If there is a shortage, what are a few options open to Jane?
It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account, and her bank loans money at 6% per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were as follows:
Items
Item
Clothes
$1,000
Interest received
$ 450
Dining out
500
Groceries
800
Salary
4,500
Auto payment
355
Utilities
280
Mortgage
1,200
Gas
222
You are required to:
Determine Jane’s total cash inflows and cash outflows.
b. Determine the net cash flow for the month of August.
c. If there is a shortage, what are a few options open to Jane?
d. If there is a surplus, what would be a prudent strategy for her to follow?
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