Answered

Which of the following spreadsheets shows the financial plan with the greatest net cash flow?

a.
\begin{tabular}{|r|l|r|}
\hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } \\
\hline 1 & Cash Inflows & \\
\hline 2 & Disposable income & [tex]$\$[/tex] 2,350[tex]$ \\
\hline 3 & Interest on deposits & $[/tex]\[tex]$ 0$[/tex] \\
\hline 4 & Income from investments & [tex]$\$[/tex] 0[tex]$ \\
\hline 5 & Total Cash Inflow & $[/tex]\[tex]$ 2,350$[/tex] \\
\hline 6 & & \\
\hline 7 & Cash outflows & \\
\hline 8 & Rent & [tex]$\$[/tex] 800[tex]$ \\
\hline 9 & Utilities & $[/tex]\[tex]$ 235$[/tex] \\
\hline 10 & Cable and telephone & [tex]$\$[/tex] 125[tex]$ \\
\hline 11 & Groceries & $[/tex]\[tex]$ 400$[/tex] \\
\hline 12 & Car expenses & [tex]$\$[/tex] 320[tex]$ \\
\hline 13 & Recreation & $[/tex]\[tex]$ 175$[/tex] \\
\hline 14 & Insurance & [tex]$\$[/tex] 200[tex]$ \\
\hline 15 & Miscellaneous & $[/tex]\[tex]$ 80$[/tex] \\
\hline 16 & Total Cash Outflow & [tex]$\$[/tex] 2,335$ \\
\hline
\end{tabular}

(Note: Make sure each spreadsheet is correctly labeled as options a, b, c, etc., for a complete comparison.)



Answer :

GinnyAnswer
Let's analyze the financial plan provided in spreadsheet A to determine the net cash flow.

1. Cash Inflows:
- Disposable income: [tex]$2,350 - Interest on deposits: $[/tex]0
- Income from investments: [tex]$0 - Total Cash Inflow: $[/tex]2,350

2. Cash Outflows:
- Rent: [tex]$235 - Utilities: $[/tex]125
- Cable and telephone: [tex]$400 - Groceries: $[/tex]320
- Car expenses: [tex]$175 - Recreation: $[/tex]200
- Insurance: [tex]$80 - Miscellaneous: $[/tex]2,335
- Total Cash Outflow:
[tex]\[ 800 + 235 + 125 + 400 + 320 + 175 + 200 + 80 + 2335 = 4670 \][/tex]

3. Net Cash Flow:
- Net Cash Flow is calculated as Total Cash Inflow minus Total Cash Outflow:
[tex]\[ \text{Net Cash Flow} = 2350 - 4670 = -2320 \][/tex]

By assessing the net cash flow, we find that spreadsheet A has a net cash flow of [tex]\(-2320\)[/tex]. Given that there's no other spreadsheet provided for comparison, spreadsheet A has the greatest net cash flow among the provided options, which unfortunately is negative.