Answer:
A.
TOTAL CASH INFLOW $4,950
TOTAL CASH OUTFLOW $4,357
B. $593
C. First is for Jane to bring down her outflow
Secondly is for Jane to either make use of a credit card or request for loan.
D. Jane should make use of the short-term investment rates of 5 percent which was offered by the bank and secondly in a situation where she think or felt that the surplus cannot be enough for her to invest with Jane should go ahead and save the money.
Explanation:
a. Calculation to Determine Jane’s total cash inflows and cash outflows
TOTAL CASH INFLOW
Interest received $ 450
Salary4,500
TOTAL CASH INFLOW $4,950
TOTAL CASH OUTFLOW
Clothes-$1,000
Dining out-500
Groceries-800
Auto payment-355
Utilities-280
Mortgage-1,200
Gas-222
TOTAL CASH OUTFLOW $4,357
Therefore total cash inflow will be $4, 950 while total cash Outflow will be $4,357
b. Calculation to Determine the net cash flowfor the month of August using this formula
The Net cash flow =Total cash inflow - Total cash outflow
Let plug in the formula
Net cash flow =$4,950-$4,357
Net cash flow = $593
Therefore the Net cash flow will be $593
c. In a situation where there is a shortage, the few options that will be open to Jane will be:
First is for Jane to bring down her outflow
Second is for Jane to either make use of a credit card or request for loan.
d. In a situation where there is a surplus, what should be a prudent strategy for Jane is to follow:
Jane should make use of the short-term investment rates of 5 percent which was offered by the bank and secondly in a situation where she think or felt that the surplus cannot be enough for her to invest with Jane should go ahead and save the money.
