To determine the net cash flow from the given spreadsheet, we need to follow these steps:
### Step 1: Calculate the Total Cash Inflow:
We are provided with individual cash inflows as follows:
- Disposable income: [tex]\(\$0\)[/tex]
- Interest on deposits: [tex]\(\$2,040\)[/tex]
- Income from investments: [tex]\(\$0\)[/tex]
Adding these values together, we get:
[tex]\[ \text{Total Cash Inflow} = \$0 + \$2,040 + \$0 = \$2,040 \][/tex]
### Step 2: Calculate the Total Cash Outflow:
We are provided with individual cash outflows as follows:
- Rent: [tex]\(\$650\)[/tex]
- Utilities: [tex]\(\$95\)[/tex]
- Cable and telephone: [tex]\(\$75\)[/tex]
- Groceries: [tex]\(\$250\)[/tex]
- Car payment: [tex]\(\$110\)[/tex]
- Student loan: [tex]\(\$115\)[/tex]
- Insurance: [tex]\(\$120\)[/tex]
- Recreation: [tex]\(\$1,750\)[/tex]
Adding these values together, we get:
[tex]\[ \text{Total Cash Outflow} = \$650 + \$95 + \$75 + \$250 + \$110 + \$115 + \$120 + \$1,750 = \$3,165 \][/tex]
### Step 3: Calculate the Net Cash Flow:
The net cash flow is determined by subtracting the total cash outflow from the total cash inflow:
[tex]\[ \text{Net Cash Flow} = \text{Total Cash Inflow} - \text{Total Cash Outflow} \][/tex]
[tex]\[ \text{Net Cash Flow} = \$2,040 - \$3,165 = -\$1,125 \][/tex]
Thus, the net cash flow is [tex]\(-\$1,125\)[/tex]. Therefore, the provided option [tex]\(\$290\)[/tex] is incorrect. The correct net cash flow is [tex]\(-\$1,125\)[/tex].
