Answer :
To determine which statement is true based on the given spreadsheet, we need to compute the total cash inflow and total cash outflow, as well as the net cash flow.
### Total Cash Inflow
From the spreadsheet, we only have one cash inflow item:
- Disposable income: \[tex]$1,600 (Note: The interest on deposits and income from investments are both \$[/tex]0.)
So, the total cash inflow is:
[tex]\[ \$1,600 \][/tex]
### Total Cash Outflow
Let's sum up all the cash outflows listed in the spreadsheet:
- Rent: \[tex]$575 - Utilities: \$[/tex]120
- Cable and telephone: \[tex]$80 - Groceries: \$[/tex]320
- Car expenses: \[tex]$150 - Recreation: \$[/tex]80
- Insurance: \[tex]$115 - Miscellaneous: \$[/tex]50
Adding these amounts together:
[tex]\[ 575 + 120 + 80 + 320 + 150 + 80 + 115 + 50 = 1,490 \][/tex]
So, the total cash outflow is:
[tex]\[ \$1,490 \][/tex]
### Net Cash Flow
To find the net cash flow, we subtract the total cash outflow from the total cash inflow:
[tex]\[ \text{Net Cash Flow} = \text{Total Cash Inflow} - \text{Total Cash Outflow} \][/tex]
[tex]\[ \text{Net Cash Flow} = 1,600 - 1,490 = 110 \][/tex]
So, the net cash flow is:
[tex]\[ \$110 \][/tex]
Based on the computed results:
- Total cash inflow: \[tex]$1,600 - Total cash outflow: \$[/tex]1,490
- Net cash flow: \[tex]$110 A true statement based on the spreadsheet is that the net cash flow for the given month is \$[/tex]110.
### Total Cash Inflow
From the spreadsheet, we only have one cash inflow item:
- Disposable income: \[tex]$1,600 (Note: The interest on deposits and income from investments are both \$[/tex]0.)
So, the total cash inflow is:
[tex]\[ \$1,600 \][/tex]
### Total Cash Outflow
Let's sum up all the cash outflows listed in the spreadsheet:
- Rent: \[tex]$575 - Utilities: \$[/tex]120
- Cable and telephone: \[tex]$80 - Groceries: \$[/tex]320
- Car expenses: \[tex]$150 - Recreation: \$[/tex]80
- Insurance: \[tex]$115 - Miscellaneous: \$[/tex]50
Adding these amounts together:
[tex]\[ 575 + 120 + 80 + 320 + 150 + 80 + 115 + 50 = 1,490 \][/tex]
So, the total cash outflow is:
[tex]\[ \$1,490 \][/tex]
### Net Cash Flow
To find the net cash flow, we subtract the total cash outflow from the total cash inflow:
[tex]\[ \text{Net Cash Flow} = \text{Total Cash Inflow} - \text{Total Cash Outflow} \][/tex]
[tex]\[ \text{Net Cash Flow} = 1,600 - 1,490 = 110 \][/tex]
So, the net cash flow is:
[tex]\[ \$110 \][/tex]
Based on the computed results:
- Total cash inflow: \[tex]$1,600 - Total cash outflow: \$[/tex]1,490
- Net cash flow: \[tex]$110 A true statement based on the spreadsheet is that the net cash flow for the given month is \$[/tex]110.
