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    Determine Jane's total cash inflows and cash outflows

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    Cash flows 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:

    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

    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?

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    Solution Preview

    See cash flow analysis in Excel, attached.

    It would be prudent for Jane to pay down debt because she can't earn more ...

    Solution Summary

    Your tutorial is a cash flow schedule and a few sentences of advice for Jane.

    $2.19