Please answer the D   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:     a.  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?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Please answer the D
 
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:
 
 
a.  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?
 
a. ​ Jane's total cash inflows are
​$4840.
  ​(Round to the nearest​ dollar.)
​Jane's total cash outflows are
​$4700.
​(Round to the nearest​ dollar.)
 
b. ​ Jane's net cash flow for the month of August is
​$140
  ​(Round to the nearest dollar. Remember that a positive number indicates a surplus and a negative number indicates a​ shortage.)
 
c.  If there is a​ shortage, what are a few options open to​ Jane?  ​(Select the best answer​ below.)
 
 
1. Jane can borrow money from her bank or withdraw money from an existing​ savings/investing account. Another alternative is to cut down on any unnecessary expenses.
 
2. Jane can open a​ savings/investing account or increase the balance on an existing account.​ Alternatively, she could reduce debt by paying more for some obligations like her auto​ loan, credit cards or mortgage. In order to maintain her monthly surplus she should maintain her current level of expenses.
 
 
d.  If there is a​ surplus, what would be a prudent strategy for her to​ follow?  ​(Select the best answer​ below.)
 
 
1. Jane can use her monthly surplus to open a​ savings/investing account or increase the balance on an existing account.​ Alternatively, she could reduce debt by paying more for some obligations like her auto​ loan, credit cards or mortgage. In order to maintain her monthly surplus she should maintain her current level of expenses.
 
2. Jane can borrow money from her bank or withdraw money from an existing​ savings/investing account. Another alternative is to cut down on any unnecessary expenses.
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