Reference no: EM132147285

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?