To determine which financial plan has the greatest net cash flow, we need to calculate the net cash flow for the provided spreadsheet. The net cash flow is found by subtracting the total cash outflows from the total cash inflows. Let's walk through the calculations based on the given values in the spreadsheet.
#### Cash Inflows:
1. Disposable income = [tex]$2,350
2. Interest on deposits = $[/tex]0
3. Income from investments = [tex]$0
Total Cash Inflow = \$[/tex]2,350
#### Cash Outflows:
1. Rent = [tex]$800
2. Utilities = $[/tex]235
3. Cable and telephone = [tex]$125
4. Groceries = $[/tex]400
5. Car expenses = [tex]$320
6. Recreation = $[/tex]175
7. Insurance = [tex]$200
8. Miscellaneous = $[/tex]80
Total Cash Outflow = [tex]$800 + $[/tex]235 + [tex]$125 + $[/tex]400 + [tex]$320 + $[/tex]175 + [tex]$200 + $[/tex]80 = [tex]$2,335
#### Net Cash Flow Calculation:
Net Cash Flow = Total Cash Inflow - Total Cash Outflow
Net Cash Flow = $[/tex]2,350 - [tex]$2,335 = $[/tex]15
Thus, the financial plan shown in the given spreadsheet has a net cash flow of [tex]$15. This spreadsheet shows the financial plan with the given net cash flow, which is $[/tex]15.
