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Jane's personal financial planning using cash flows Cash flows: It is typical for Jane to plan, monitor and assess her financial position using cash...

Jane's personal financial planning using cash flows

Cash flows: It is typical for Jane to plan, monitor and assess her financial position using cash flow over a given period, typically a month. Jane has a savings account and her bank loans money a 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?

This question was asked on Jan 14, 2013.

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