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?