Question

Based on the spreadsheet below, which of the following is a true statement?
A 2-column spreadsheet showing Cash Inflows and Cash Outflows. Cash inflows are Disposable income 1,600 dollars, interest on deposits 0 dollars, income from investments 0 dollars, with total cash inflow blank. Cash outflows are rent 575 dollars, utilities 120 dollars, cable and telephone 80 dollars, groceries 320 dollars, car expenses 150 dollars, recreation 80 dollars, insurance 115 dollars, miscellaneous 50 dollars, with total cash outflow blank.
a.
The net cash flow is negative.
b.
The net cash flow is zero.
c.
The net cash flow is positive.
d.
The net cash flow can’t be determined.

Answer 1

Total inflow = $1,600.
Total outflow = 575+120+80+320+150+80+115+50 = $1,490.
Net cash flow = 1,600 − 1,490 = $110, which is positive.

Answer: c. The net cash flow is positive.