Based on the spreadsheet below, which of the following is a true statement?

\begin{tabular}{|c|c|c|}
\hline
& A & B \\
\hline
1 & Cash Inflows & \\
\hline
2 & Disposable income & [tex]$\$[/tex] 1,600[tex]$ \\
\hline
3 & Interest on deposits & $[/tex]\[tex]$ 0$[/tex] \\
\hline
4 & Income from investments & [tex]$\$[/tex] 0[tex]$ \\
\hline
5 & Total Cash Inflow & \\
\hline
6 & & \\
\hline
7 & Cash Outflows & \\
\hline
8 & Rent & $[/tex]\[tex]$ 575$[/tex] \\
\hline
9 & Utilities & [tex]$\$[/tex] 120[tex]$ \\
\hline
10 & Cable and telephone & $[/tex]\[tex]$ 80$[/tex] \\
\hline
11 & Groceries & [tex]$\$[/tex] 320[tex]$ \\
\hline
12 & Car expenses & $[/tex]\[tex]$ 150$[/tex] \\
\hline
13 & Recreation & [tex]$\$[/tex] 80[tex]$ \\
\hline
14 & Insurance & $[/tex]\[tex]$ 115$[/tex] \\
\hline
15 & Miscellaneous & [tex]$\$[/tex] 50$ \\
\hline
16 & Total Cash Outflow & \\
\hline
\end{tabular}



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.